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Company Voluntary Arrangement
Arcadia's creditors backed a restructuring of the Topshop to Burton group earlier this week. That sparked one of the investment trusts with exposure to Sir Philip Green's retail empire to try to reassure investors about the impact on its financial position on Friday.
NewRiver REIT (real estate investment trust) said that its rental exposure is limited to £363,000, which represents 0.3% of its gross income, and that there will be no reduction to this rental income as a result of the restructurings.
Creditors, including landlords, backed a series of Company Voluntary Arrangements which will trigger the closure of 48 stores and rent reductions on others.
NewRiver says it specialises in buying, managing and developing retail and leisure properties throughout the UK. Its shares, part of the FTSE 250, are up 1% at 191p but were trading above 230p a month ago.
BBC Radio 4
Why did the landlords back the Arcadia deal?
Melanie Leech, chief executive of the British Property Federation, told BBC Radio 4's Today Programme that landlords are "quite often caught between a rock and hard place".
Landlords will want Sir Philip Green to "deliver on his promise that [he's] going to get on with the job. They will want to see and believe that there is a fair and credible turnaround plan for the business... and that the management and the ownership is committed to it".
Intu - the shopping centre owner - was the landlord which voted against the deal and Ms Leech said she understood concerns about different terms being offered to different tenants. She added, though, that retailers, did not want to be next to "dark shops".
"No body wants to be trading next to an empty shop," she said.
Arcadia's biggest landlord, Intu, has revealed that it voted against a deal to save the Topshop empire.
The firm - which owns Lakeside shopping centre, the Trafford Centre and Manchester Arndale - said: Our rationale for this vote is clear."
"We firmly believe that the terms of the Arcadia CVA are unfair to our full rent paying tenants and not in the interests of any of our other stakeholders, including Intu shareholders and the 130,000 people whose jobs rely on the success of our prime shopping centres.
"While we are disappointed with the outcome of today’s vote, we will work constructively with Arcadia to achieve the best outcome for both sides."
Sir Philip Green's Arcadia retail empire has been saved by a rescue deal that will trigger the closure of 48 stores and a thousand jobs.
The plan, a Company Voluntary Arrangement (CVA), was approved by Arcadia's creditors.
After a week's delay and five hours of discussion Arcadia'a landlords finally agreed to rent cuts, 23 store closures and 520 job losses.
Following the CVA, another 25 stores and another 500 jobs will be axed.
Arcadia Group has avoided administration after the firm's creditors approved all seven of the company voluntary arrangements they were asked to vote on in a crunch ballot today.
In a statement, Arcadia chief executive, Ian Grabiner, said: "After many months of engaging with all our key stakeholders, taking on board their feedback, and sharing our turnaround plans, the future of Arcadia, our thousands of colleagues, and our extensive supplier base is now on a much firmer footing."
“I am confident about the future of Arcadia and our ability to provide our customers with the very best multi-channel experience, deliver the fashion trends that they demand, and ultimately inspire a renewed loyalty to our brands that will support the long-term growth of our business."