- Kristopher Fraser |
Fashion Network has reported that Vornado, a U.S. landlord, has raised questions over Phillip Green and his Arcadia Empire over the manipulation of a CVA vote by increasing its debt owed to suppliers. Arcadia Group just narrowly escaped collapse last week when its unsecured creditors voted to approve a company voluntary agreement. Arcadia Group is the owner of Topshop, Topman, Burton, Dorothy Perkins and Miss Selfridge.
The results of the deal will allow Topshop and Topman to close its stores, including 23 stores in Ireland and the United Kingdom, in addition to all of its U.S. stores. Vornado's issue is that Arcadia's debts to certain suppliers jumped at the time of a second vote undermining landlord's power to block it.
Debts to 10 Topshop and Topman suppliers rose by a total 24 million pounds on June 7, when Arcadia proposed its revised CVA, and June 18, the Sunday Times reported.
Vornado has also asked why an inter-company debt owed by Topshop-Topman to their parent company climbed from 3.7 million pounds to 103.7 million pounds over the same period.
“The accusation is that the CVA culprit is creating an even higher voting right for non-landlords, to force it through,” Adam Coffer of property investor EPF told the Sunday Times.
Arcadia Group is also facing a legal challenge by a set of American landlords who are not happy over Topshop and Topman's choice to put itself in receivership. Vornado is leading the charge for the group of landlords who say that this denies them their rights.