Sir Philip Green’s Arcadia has won a legal battle with American landlords following Topshop USA’s bankruptcy filing.
Five US landlords, including property giant Vornado, were seeking to recoup more than 100 million pounds in losses, arguing that Arcadia’s company voluntary arrangements (CVAs) had compromised their rights as foreign creditors, The Sunday Times reports.
Arcadia, which owns Topshop, Dorothy Perkins, Miss Selfridge, Wallis, Evans and Burton, is now free to move the cash it generated from liquidating stock from its 11 closed US stores back to the UK.
The company received the green light last month by creditors to go ahead with its CVA plan to close 23 stores across the UK and Ireland. As part of the restructuring strategy, Lady Tina Green, the group’s majority shareholder and wife of Sir Philip Green, will invest 50 million pounds of equity into the group, in addition to the 50 million pounds of funding already provided in March.
Photo credit: FashionUnited