Sir Philip Green’s Arcadia Group has bought back a 25% stake in Topshop from a US private equity firm as it plans for a major restructure.
Leonard Green and Partners bought the stake in Topshop and Topman for a reported £350m in 2012. The firm said in a statement: “The transfer simplifies the shareholding structure of TSTM and enables the Arcadia board to focus on the restructuring options currently being considered. Leonard Green remains supportive of the business and has the opportunity to repurchase its stake in TSTM in the future.”
Two representatives from Leonard Green and Partners have also resigned their board positions at Arcadia Group.
Green’s survival plan for the group includes closing stores and halving payments to its pension fund.
Green has appointed two restructuring specialists to the board: Jamie Drummond Smith, formerly of Cattles plc, has replaced Baroness Karren Brady as interim chairman. Baroness Brady resigned earlier in the year after Philip Green was accused of sexual harassment.
Peter Bloxham, formerly of Freshfields, has joined as interim non-executive director.
Arcadia Group is the parent company of several prominent fashion brands, including Topshop, Burton, and Miss Selfridge.