Sir Philip Green must inject a further £50m into Arcadia Group’s pension scheme to stop the company collapsing next week, regulators say
- The Pensions Regulator (TPR) said cash is needed on top of £100m proposal
- He has pledged roughly £185m of security in form of flagship Top Shop store
- The billionaire tycoon has also pledged other assets to the pension fund
- TPR are demanding £360m pension funding package – set to increase to £410m
- It is thought that the difference will be made up by the additional payment
A pensions watchdog is demanding that Sir Philip Green (pictured in Monaco this month during the Grand Prix) injects a further £50m to the retirement scheme of his Arcadia retail empire to stop it collapsing.
The pensions watchdog is demanding that Sir Philip Green injects a further £50m to the retirement scheme of his Arcadia retail empire to stop it collapsing.
In a new blow to the tycoon, who was accused in the House of Lords last week of grabbed women’s breasts and thighs, slapped their bottoms and having hundreds of grievance cases against him, the Pensions Regulator (TPR) has told Sir Philip to come up with the cash on top of an existing proposal from his family to inject £100m into the Arcadia pension fund.
Sky News reported Sir Philip has pledged roughly £185m of security in the form of his flagship Top Shop store in London’s Oxford Street.
He has also pledged to donate other assets to the pension fund.
The company has said it will inject £25m in annual contributions during next three years.
According to city sources, TPR are demanding £360m aggregate pension funding package – set to be increased to £410m.
It is thought that the difference will be made up by the additional payment.
While the company is not in debt, the profits do not cover payments to landlords and its required pension scheme pension fund, which has a deficit of at least £300 million.
Sir Philip has pledged roughly £185m of security in the form of flagship Top Shop store in London’s Oxford Street
Sir Philip wants to set up a Compulsory Voluntary Agreement with Arcadia’s creditors, which would allow the businesses to reduce debts and financial obligations.
He set out plans to try to rescue fashion empire in an email to the group’s 18,000 staff on Wednesday.
The strategy, which is part of a last-ditch attempt to keep the business afloat, was explained in an email by Ian Grabiner, the chief executive of Arcadia and one of Green’s longest-serving managers.
The blueprint includes investing £135 million in the next three years in Arcadia’s brands, including Topshop, Dorothy Perkins and Wallis.
He pledged to invest £75 million on refurbishing stores, some of which have become dowdy. The remaining £60 million will be used to upgrade the online operation.
Arcadia enjoyed profits of more than £200 million in 2016 but this year they have plunged to £30 million.
While the company is not in debt, the profits do not cover payments to landlords and its required contributions to its pension scheme, which has a deficit of at least £300 million.
Sir Philip is attempting to reorganise payments into the pension fund, which looks after the nest eggs of 9,500 members.
The tycoon has stated his intention to close 23 stores across the UK – which would result in more than 500 job losses . He also intends to close 11 shops in the US.