The £9.5m deal with Arcadia landlords will work in the Green family’s favour if it allows them to put a lid on pensions liability
Sir Philip Green does blink, after all. Last Friday, he reached into his wallet – or, rather Lady Green’s – and agreed to give Arcadia’s revolting landlords another £9.5m a year in rent. The sum is not a hand-out, obviously. The Greens still want lower rents on 194 of their shops. The £9.5m merely represents the difference between reductions of between 30% and 70%, as proposed in plan A – shot down by the landlords last week – and the new offer of cuts of 25%-50%.
One response could be to declare a triumph for the property giants, or at least those who dug their heels in. They heard Green’s threats that Arcadia would be tipped into administration if they voted against the restructuring plan – formally, a company voluntary arrangement, or CVA – but decided to take their chances. They’ve secured a better offer that they are free to reject or approve at the rescheduled vote this Wednesday. So, yes, it’s a little victory for the landlords.