MORE stores could close on the High Street and at out of town shopping centres as the Arcadia Group continues to review its business. A list of stores at sixty seven locations across the UK and Ireland have reportedly been earmarked for closure.
Many of the stores in question are part of Sir Philip Green’s retail empire and reportedly include Burton, Topshop, Evans, Dorothy Perkins, Miss Selfridge and Wallis.
The demise of some of the biggest names on the High Street has been extraordinary in recent years and much of it is blamed on the public’s choice to shop online. High rents and lease agreements have also been cited as a contributory factor.
Many of the big names have sought Company Voluntary Agreements (CVA’s) in an effort to stave off any closures.
CVA’s are an insolvency process, specific to the UK. It is a debtor-in-possession process with minimal court involvement whereby the directors of the company stay in control of the business.
The purpose of a CVA is to allow a company to negotiate with unsecured creditors, including but not limited to suppliers, HMRC, employees and landlords, with the purpose to generate liquidity whilst maintaining the business as going concern.