March 15, 2019 / 11:13 PM / 11 days ago

Philip Green's Arcadia in restructuring move

FILE PHOTO: British billionaire and CEO of the Arcadia Group Philip Green smiles as he attends the opening ceremony of a Topshop flagship store in Hong Kong June 6, 2013. REUTERS/Bobby Yip

LONDON (Reuters) - British retail businessman Philip Green is working on a restructuring of his Arcadia Group which owns the Top Shop, Miss Selfridge and Dorothy Perkins chains, the firm said on Friday.

In a statement Arcadia said it was dealing with “an exceptionally challenging retail market” and “continued pressures that are specific to the UK high street.”

The retailer said it was exploring several options to enable Arcadia operate in a more efficient manner.

“None of the options being explored involve a significant number of redundancies or store closures. The business continues to operate as usual including all payments being made to suppliers as normal,” it said.

British retailers are facing a perfect storm of rising costs, uncertainty in the economy around the UK’s exit from the European Union and the structural shift online.

Earlier on Friday, media reports said Green was considering a company voluntary arrangement (CVA), a restructuring mechanism which allows firms to close unwanted stores and cut rent bills.

CVA arrangements have been adopted by other Britishretailers, including fashion chain New Look, floor coveringsretailer Carpetright, mother-and-baby goods companyMothercare and home improvements chain Homebase.

Reporting by James Davey; editing by Grant McCool and Sandra Maler

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