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Philip Green buys back shares ahead of expected restructuring | Philip Green buys back shares ahead of expected restructuring |
(32 minutes later) | |
US investor Leonard Green has sold its 25% stake in retailers Topshop and Topman (TSTM) back to Sir Philip Green's Arcadia retail empire. | US investor Leonard Green has sold its 25% stake in retailers Topshop and Topman (TSTM) back to Sir Philip Green's Arcadia retail empire. |
There are reports it may now seek a company voluntary arrangement (CVA), allowing it to cut rents and close stores. | There are reports it may now seek a company voluntary arrangement (CVA), allowing it to cut rents and close stores. |
The group also includes brands such as Burton and Miss Selfridge. | |
In March Arcadia said that job cuts and store closures from any restructuring would not be "significant". | In March Arcadia said that job cuts and store closures from any restructuring would not be "significant". |
Arcadia has 1,170 shops in 36 countries, although the majority are concessions or franchises. | |
It has 300 shops in the UK after shutting 200 of them over the past three years. | |
Sir Philip has called in consultants Deloitte to plan a full restructuring of the group after a fall in profits and sales. | |
Pension negotiations | Pension negotiations |
The sale has also raised hopes it may prompt Sir Philip to repair a £500m hole in the Arcadia pension fund. | The sale has also raised hopes it may prompt Sir Philip to repair a £500m hole in the Arcadia pension fund. |
In 2017 Arcadia agreed to double the pension scheme contributions to £50m per year for 10 years, after it had been revealed that its deficit was running at close to £1bn. | In 2017 Arcadia agreed to double the pension scheme contributions to £50m per year for 10 years, after it had been revealed that its deficit was running at close to £1bn. |
It is now negotiating with the Pensions Regulator over a reduction in its cash contributions. | It is now negotiating with the Pensions Regulator over a reduction in its cash contributions. |
Leonard Green & Partners (LGP), an American private equity firm with investments in brands such as Lucky Brand Jeans, J Crew and Pure Gym, bought a 25% stake in TSTM, for a reported £350 million in 2012. | Leonard Green & Partners (LGP), an American private equity firm with investments in brands such as Lucky Brand Jeans, J Crew and Pure Gym, bought a 25% stake in TSTM, for a reported £350 million in 2012. |
Investors had hoped the deal would help it expand in the US. | Investors had hoped the deal would help it expand in the US. |
'Supportive' | 'Supportive' |
LGP sold the stake in TSTM back to Arcadia for an undisclosed sum and said in a statement: "The transfer simplifies the shareholding structure of Topshop Topman and enables the Arcadia board to focus on the restructuring options being considered. | LGP sold the stake in TSTM back to Arcadia for an undisclosed sum and said in a statement: "The transfer simplifies the shareholding structure of Topshop Topman and enables the Arcadia board to focus on the restructuring options being considered. |
"Leonard Green remains supportive of the business and has the opportunity to repurchase its stake in the future." | "Leonard Green remains supportive of the business and has the opportunity to repurchase its stake in the future." |
Last year Sir Philip was embroiled in claims - strongly denied - of bullying and inappropriate behaviour. | Last year Sir Philip was embroiled in claims - strongly denied - of bullying and inappropriate behaviour. |
He was also criticised over the demise of department store chain BHS, which collapsed in 2016, a year after he sold it for just £1. | He was also criticised over the demise of department store chain BHS, which collapsed in 2016, a year after he sold it for just £1. |