UK shopping centre operator Intu looks set to reject a proposed rent cut by Arcadia across nearly 200 of its 570 stores, casting fresh doubts over the future of Sir Philip Green's fashion group.

UK media outlets including the BBC quoted sources within the company saying Green's plan for less severe cuts was opposed by a number of landlords, including Intu, which owns 35 of Arcadia's outlets.

Arcadia, which owns Top Shop, Miss Selfridge and Dorothy Perkins, faces going into administration if Sir Philip fails to secure backing for his plans, which involve closing 50 stores and seeking rent reductions on a further 194, at a landlords' meeting on June 12.

Green wants to restructure the businesses using seven company voluntary agreements (CVAs), which allow occupiers to break rental contracts in order to rescue their businesses. However, any new deal has to be backed by 75% of creditors and Green needs all seven CVAs to keep Arcadia afloat, analysts have said.

The landlords' vote has already been postponed once, when Arcadia's advisers Deloitte suspended a meeting on June 5 before the issue could be put to a ballot after an initial count indicated the proposal would be defeated. Landsecs, Aviva and M&G are also thought to have opposed the deal, while British Land backed it.

Green's wife, Lady Tina Green, a shareholder in Arcadia, has offered to invest around £9.5 mln (€10.7 mln) a year for three years in order to bring down the rent cuts to around 40%, far less than the 70% originally sought.

The Guardian newspaper quoted an Intu source as saying the company was not prepared to accept the revised terms. 'Intu wants to create a fair environment for all its retailers and taking a huge haircut from one of them is not fair,' the source said.

Intu warned in a trading update a month ago that it was expecting its income from rentals to drop significantly this year as a result of high street failures. New chief executive Matthew Roberts admitted that the effect of store closures by Debenhams and Arcadia had not been factored in to previous company forecasts.

'We expect the remainder of 2019 to be challenging due to a higher than expected level of CVAs and a slowdown in new lettings as tenants delay their decisions due to uncertainties in the current political and retail environments,' he said.