British retail tycoon Philip Green’s Arcadia Group recently announced plans to close 23 of its 566 UK-Irish stores in a major restructuring of the fashion business that may also see its Topshop/Topman stores close in the United States. Arcadia said it had instigated seven company voluntary arrangements (CVAs), mechanisms that allow the business to avoid insolvency. Arcadia also runs fashion retailers Wallis, Miss Selfridge, Dorothy Perkins, Evans, Burton and Outfit. Several British store groups have either shut down completely or announced plans to close shops over the last two years as they struggle with subdued consumer spending, rising labour costs, higher business property taxes and growing online competition. Under the proposals, which will require creditor approval, Arcadia is also requesting a reduction in rental costs and revised lease terms across 194 other UK and Ireland locations, according to British media reports.
