Topshop owner Sir Philip Green pens £310m deal to remortgage flagship store
SIR Philip Green's retail empire has struck a giant deal with an American private equity company to keep the doors open at his flagship Topshop store.
The tycoon has remortgaged his building on Oxford Street, which houses a 100,000 sq ft Topshop and Topman, as well as a giant Nike store, and offices above the shops, his company Arcadia confirmed.
US private equity giant Apollo has signed a £310 million deal with Sir Philip to provide much-needed refinancing for the building, ahead of a deadline which was coming by the end of the year.
"The Arcadia Group Ltd is pleased to confirm it has completed the refinancing of its £310 million loan on 214 Oxford Street for four years term with Apollo Management International LLP," the company said in a statement.
Around 400,000 customers stream through the doors of the flagship Topshop store on Oxford Street each week.
Sir Philip's hunt for someone to remortgage the building has been going on for months since it first came to light in September.
At the time, the group confirmed in its 2018 annual accounts that the £310 million was due to be repaid in June this year, but the deadline was extended to December, giving Arcadia breathing space.
The results also showed shoemaker Vans will move into a part of the building formerly occupied by Miss Selfridge, one of Arcadia's brands.
In June, Sir Philip scored a big win for the future of his company when landlords agreed to slash rents at many of Arcadia's stores.
The company closed 23 shops, and Sir Philip and his wife were forced to fund some concessions to landlords out of their own pockets.
The Oxford Street refinancing was identified as another major hurdle for Sir Philip's high street empire to clear.
British high street stores have been going through a tough time as they battle with rents and customers who are increasingly moving to online shopping.
Several of Arcadia's high street neighbours have been forced into administration, including Mothercare, which collapsed earlier this year.