Philip Green set for Arcadia showdown

Retail tycoon facing crunch vote with
regulators and landlords as he faces fresh allegations of sexual
misconduct

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Green, who has faced calls for his knighthood to be stripped
after allegations emerged of sexual impropriety and abuse
surfaced last year, faces four counts of misdemeanour
assault.

The charges come after a fitness instructor in Arizona alleged
that he repeatedly touched her inappropriately. Pima County
Attorney’s Office said each count carries a potential sentence of
up to 30 days in jail and if found guilty Green could also face a
fine of up to $500 (£400) and up to a year of probation on each
count, the attorney’s office said.

Charges against Green come “as his business faces significant
challenges”, The
BBC says, with nearly 50 stores due to close and MPs
calling on him to use his own wealth to fund the company’s pension
scheme.

This week, Green faces a crucial vote on the future of his
Arcadia empire. “If landlords and the pension regulator vote
against his proposal to repay creditors over a fixed period, the
business could go into administration”, says the BBC.

In a bid to secure the support of creditors, Green has put one
of his prized central London properties on the market for £90m. It
follows a pledge to invest £135m in an overhaul of Topshop, Dorothy
Perkins and Wallis, as part of an effort to win rent reductions and
approval for store closures in a vote of landlords.

Property sources said building owners were leaning towards
“reluctantly approving” the restructuring as the alternative
is administration, The Daily Telegraph reports.

“Others remain concerned the Green family has taken out £1.2bn
in dividends while squeezing investment”, says the paper, with the
regulator demanding the Greens pump in £50m to Arcadia’s pension
scheme, “raising doubts over whether Sir Philip’s plans will be
approved”.

The future of Green’s Topshop empire is “on a knife-edge”,
The Times reports, as pensions
authorities threaten to kill the controversial restructuring to
close stores and cut rents.

A source close to the Pension Protection Fund, the lifeboat for
final salary schemes, said it was prepared to vote against a
company voluntary arrangement (CVA) for Arcadia Group, saying “it’s
all going to the wire”.

However, a source close to Green said the authorities would not
“dare” to vote against the CVA and risk tipping Arcadia into
administration.