(Bloomberg) -- Billionaire Philip Green kept his retail empire alive after a majority of creditors voted in favor of a rescue package involving rent cuts and store closures.
Green’s Arcadia Group Ltd., which owns well-known U.K. fashion brands including Topshop, Dorothy Perkins and Miss Selfridge, said on Wednesday that its plans were approved by the “required majority” of creditors. The proposals needed 75% support.
The company will now pursue plans to close dozens of stores and reduce rents at 194 sites across the U.K. and Ireland, saving the retail group from potentially collapsing into administration.
The company, which employs 18,000 people globally, told creditors last month that it was “highly likely” to go into administration immediately or soon after if the vote was unsuccessful.
While the vote buys Arcadia precious time, it will still have to weather a retail crisis as brands struggle to contend with a global shift to online shopping.
“Even with the vote going through, it’s hard to be confident about trading prospects for Arcadia,” said Richard Hyman, an independent retail consultant. “Lower rents will give some wriggle room on margins but I see the market outlook getting materially worse before things improve.”
--With assistance from Luca Casiraghi.
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