American backer Leonard Green out of Sir Philip Green’s TopShop
A US investor which was going to help Sir Philip Green’s Topshop to crack America has sold its stake back as the billionaire overhauls his retail empire, the Standard can reveal.
Leonard Green & Partners, a private equity firm, bought a 25% stake in Topshop and Topman, part of Green’s Arcadia group, for a reported £350 million in 2012, valuing the group at £2 billion. The deal was meant to help the fashion chain, considered the jewel in the crown of Green’s now struggling empire, further its US expansion.
The J Crew and Pure Gym backer sold its stake to Arcadia for an undisclosed sum. It said: “The transfer simplifies the shareholding structure of Topshop Topman and enables the Arcadia board 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.”
Last week, two Leonard Green directors, Adam Levyn and Jonathan Sokoloff, resigned from Arcadia’s board.
Arcadia, which also owns Wallis, Dorothy Perkins and Miss Selfridge brands, is planning to close a raft of stores overseas, it emerged. It has 1,170 shops in 36 countries, although the majority are concessions or franchises. Arcadia’s overseas sales dropped by just under a fifth to £241.5 million in 2017, while operating profits crashed 42% to £124 million in its most recent accounts.
Green has been battling the fallout from his £1 sale of BHS and allegations of sexual harassment, which he denies.
Arcadia has more than 300 UK shops after shutting 200 over the past three years. It is also working on a potential company voluntary arrangement to shut shops or renegotiate rents but needs to get landlords on board.
