Proactive Investors - Run By Investors For Investors

Sir Philip Green buys back 25% Topshop stake ahead of possible restructuring

“The transfer simplifies the shareholding structure of Topshop Topman and enables the Arcadia board to focus on the restructuring options being considered,” said Leonard Green & Partners
sir philip green
Arcadia’s portfolio of high street brands have struggled in recent years

Sir Philip Green’s troubled Arcadia retail group has bought back a 25% stake in clothes stores Topshop and Topman (TSTM) from US private equity house Leonard Green & Partners.

The US investor, which owns Pure Gym, bought the stake in 2012 for a reported £350mln. It was hoped at the time that the deal would help Topshop and Topman expand across the pond.

News of the purchase comes at a time when Arcadia is reportedly mulling a company voluntary arrangement – a type of insolvency that would allow it to cut rents and close stores.

READ: Philip Green’s Arcadia retail empire considering CVA – media reports

Last month, the group, which also includes Burton and Miss Selfridge, said any job cuts and store closures would not be “significant”.

Like much of the high street, Arcadia’s stores have seen sales and profits fall in recent years as shoppers switch to online shopping.

Stagnant wage growth and political and economic uncertainty have also dented consumer confidence, while bricks-and-mortar retailers have been stung by higher business rates and taxes.

The group is also in discussions with pension regulators about reducing its cash contributions into its pension pot, which currently has a £500mln hole in it.

Chance to buy it back (again)

Green himself has been embroiled in claims of bullying and inappropriate behaviour, which he has strongly denied.

Arcadia couldn’t be immediately reached for comment, but Leonard Green said the transaction allowed Arcadia to “focus on the restructuring options being considered”.

“Leonard Green remains supportive of the business and has the opportunity to repurchase its stake in the future,” it said in a statement.

View full PROIN profile View Profile

Proactive Insights Timeline

Related Articles

clapperboard
March 04 2019
At the Completion Contract business there have been lower volumes and the average budget per film has reduced
Students in a class
August 27 2018
The company is gaining traction in Asia where people are looking to take language courses to work or study internationally
pills
March 22 2019
The healthcare-focused advisory group boasts good levels of forward bookings thanks to several new business wins at the beginning of 2019

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use