Philip Green Repurchases Topshop25% Stake And Announces Restructuring Of Fashion Empire

After Philip Green Philip Green returned to the US private Holdings Company to buy the British high street fashion brand Topshop/Topman (TSTM) 25% stake, he announced the appointment of the new director, symbolizing the once great British retail tycoon began to restructure his declining fashion empire in a large scale.

Leonard Green & Partners LP pointed out that with the end of their investment in TSTM, two companies representing Adam Levyn and JonathanSokoloff have also withdrawn from the board of TSTM.

Leonard Green & Partners LP, the first external investor, paid 350 million pounds for TSTM's stake in 2012, making the retailer get a valuation of 2 billion.

At that time, the Losangeles investment company wanted to help TSTM penetrate the US market and achieve the goal of doubling the US business scale to US $1 billion in three or four years and doubling global sales.

Since then, the brand has been expanding successfully in the us through cooperation with Nordstrom Inc. (NYSE:JWN) Nord, a high-end department store, but that's all.

Five years later, Leonard Green & Partners LP reduced the value of the investment to zero, which means that Philip Green's buyback might not cost a cent.

Neither side disclosed details of the paction, and Philip Green spokesman declined to comment.

Leonard Green & Partners LP pointed out in the press release that equity pfer simplifies the shareholder structure of TSTM, so that the board of ArcadiaGroup Ltd. of brand parent company can focus on weighing the restructuring plan.

Informed sources revealed that the two sides maintained friendly relations.

British media say Philip Green has appointed two new directors who are reorganized.

Peter Bloxham, former partner, reformer and bankruptcy director of Freshfields Bruckhaus Deringer, will become a non-executive director of Taveta Investments Ltd. of Arcadia Group Ltd. and its holding company, while DDT former partner, Mr Hui Chi Hui, will also serve as chairman of the interim Board of the two companies to fill in the chairman of the company who resigned in February with the chairman of the board of directors and non-executive directors because of sexual harassment and racial discrimination scandals.

Peter Bloxham and Jamie Drummond Smith also joined TSTM's board of directors.

Jamie Drummond Smith said that at this stage, the board of directors will focus on creating a stable platform for the group to carry out the restructuring plan.

At present, the media has disclosed the restructuring measures, including the use of bankruptcy procedures, "voluntary arrangement of companies" (CVA), closing dozens of British stores, and fighting for the remaining stores to reduce rent by 30%. There are even reports that Philip Green is willing to take the 20% stake of Arcadia Group Ltd. in exchange for owners' support for CVA.

In the past three years, the group has closed 200 stores, and the total number of stores in the domestic market is about 300.

In addition, Philip Green was discussed last week with the trustees of the pension regulatory agency Arcadia Group Ltd.'s pension fund to discuss the reduction of pension investments.

Two years ago, he only raised the annual pension for Arcadia Group Ltd. in the next ten years from 25 million pounds to 50 million pounds in the bankruptcy of BHS department store. Now he plans to cut it to 25 million pounds again.

The Committee on employment and retirement of the British Parliament condemned it yesterday. The chairman of the committee, Frank Field, bombed Philip Green to reapply the old technology used to BHS department store. After the business went bad, she left the remaining cash and left.

The 100 year old chain store in the UK was released by Philip Green at 1 pounds in 2016. It only applied for bankruptcy and final liquidation in one year, leaving only 11 thousand employees who lost their jobs and 571 million pensions deficit. Philip Green was willing to pay 363 million pounds out of their own pockets under the pressure of huge political and public opinion.

According to the committee's report, under the premise of continuing operation, the Arcadia Group Ltd. last year's pension deficit amounted to 727 million pounds, and the actuarial approach deficit was 530 million.

The market expects the group to apply for CVA in early May.

The guardian quoted news that Philip Green plans to inject cash 100 million pounds into Arcadia Group Ltd. to refurbish stores and rebuild its brand.