UK retail boss Sir Philip Green is reportedly in the process of exploring a company voluntary arrangement (CVA) as part of the Arcadia turnaround plan.

The retail group, which owns Topshop, has seen its profits decline sharply in recent years with young shoppers redirecting their purchases to online stores.

It has also been reported that the CVA may result in the loss of several jobs, as well as store closures, though, according to Arcadia Group, it would not be “significant.”

The company’s other brands, such as Wallis, Miss Selfridge and Evans have also reportedly been facing the tough high street environment.

“We are exploring several options to enable the business to operate in a more efficient manner.”

According to The Guardian, Arcadia said: “Within an exceptionally challenging retail market and given the continued pressures that are specific to the UK high street we are exploring several options to enable the business to 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.”

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By GlobalData

Media reports noted, in January this year, that Green was seeking to restructure his retail portfolio, by introducing the Arcadia turnaround plan, as the leases of up to 200 stores have nearly expiry.

Other UK retailers, including New Look, Mothercare and Carpetright have utilised CVAs to downsize their chains and reduce rental costs to offset a declining sales and rising costs.