Sir Philip Green has appointed restructuring experts to the board of his retail empire as the billionaire tycoon prepares to overhaul the company.
Former Deloitte partner Jamie Drummond Smith, who was the chairman of Cattles, has joined the board as interim chairman and Peter Bloxham, an independent restructuring advisor and former head of restructuring and insolvency at Freshfields, has joined the board as interim non-executive director.
Arcadia is expected to announce a restructuring plan in May, which will likely include a company voluntary arrangement to allow the firm to shutter stores or reduce rental agreements with landlords.
The appointments come at a challenging time for Arcadia and Green, and follow the resignation of Karren Brady and Sharon Brady who stepped down from the board after allegations of inappropriate behaviour emerged against Green.
US private equity firm Leonard Green and Partners announced yesterday that it had sold its 25 per cent stake in Arcadia flagship brand Topshop.
The retail mogul was also accused of being up to “old tricks again” by work and pensions select committee chairman Frank Field MP yesterday, following reports that Arcadia wants to halve the annual funding it provides to its pension pot.
On Monday, the House of Lords standards body dismissed Green’s complaint against Lord Hain, who named the billionaire as the businessman at the centre of the misconduct scandal.
Drummond Smith said: “Arcadia and Topshop Topman have faced unprecedented market conditions on the UK high street.
“We will be supporting the boards as they progress the restructuring options for the businesses to create a stable platform for the group to implement its turnaround plan.”