Arcadia has denied claims that owner Sir Philip Green is considering breaking up the brands in his group so they can be sold separately over time.
According to the Sunday Times, Arcadia has begun separating shared functions such as HR and IT across the brands, which include Topshop, Dorothy Perkins, Miss Selfridge, Wallis, Evans and Burton.
The news comes after last week it was revealed US landlords Vornado and Caruso agreed to drop challenges against two of Arcadia’s company voluntary arrangements (CVAs). According to the Times, Green had been waiting for the legal challenges to be resolved before beginning the separation of his brands.
The British newspaper added that Arcadia’s chief executive Ian Grabiner is overseeing the separation efforts, and reportedly advised Green the group would not be able to trade its way out of its current difficulty.
A spokesperson for Arcadia denied the reports in a statement, saying the claims are “incorrect and unfounded.” The statement read: “Following the formal completion of the CVA process last week, the board is now fully focused on implementing its turnaround plan across all its brands.”
Arcadia received creditor approval in June to move forward with plans to close 23 of its stores across the UK and Ireland as part of a CVA.
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