Regulators have agreed a £25m injection deal with retail mogul Philip Green to help boost his Arcardia Group’s pension fund.
The Guardian reports that in response to The Pensions Regulator demanding £50m to fill a black hole in provision, Arcadia has now turned over security for some £25m in property to its pension fund.
Green hit the headlines two years ago as MPs probed why pension provisions were lacking after the collapse of department store BHS, where regulators had also called for Green to pump hundreds of millions in to prop up the fund.
Arcadia – which is an empire that still spans household names like Topman, Dorothy Perkins, Burton and Miss Selfridge – and Green had already agreed £360m in additional pension scheme funding over the next three years with the regulator before this latest deal.
Despite being less than the initial £50m sought, the scheme’s trustees said the deal “materially enhances the security of the benefits of the 9,500 pension scheme members” while providing “the best outcome achievable”.
The Pensions Regulator says: “We recognise that the best support for any pension scheme is a trading employer and we feel the [company voluntary arrangement] proposals now provide the right balance between security for the pension schemes and the chance of sustainability for the company.”
Estimates have put the deficit in the Arcadia scheme at some £750m.