UK retail empire Arcadia Group has agreed terms of a £25m pension scheme with its trustees and The Pensions Regulator (TPR).
The company, owned by disgraced UK retail businessman Sir Philip Green, has agreed to provide £210m of security for the schemes, which includes the additional £25m agreed with TPR. The Group said that Green’s wife, Lady Green, will provide a voluntary contribution of £75m over three years plus an additional £25m, bringing the total to £100m.
Arcadia Pension Schemes trustees said in a statment: “The Trustees of the Arcadia Pension Schemes wish to thank Lady Cristina Green for the voluntary £100m cash support that she has announced, which alongside the £210m in security being provided to the schemes materially enhances the security of the benefits of the 9,500 Pension Scheme members. Having engaged extensively with the Pensions Regulator, the Pension Protection Fund and the Arcadia Board to consider its turnaround plan, the total package of support announced provides the best outcome achievable for the Schemes.”
Arcadia Group CEO Ian Grabiner said: “We hope that the landlords and other creditors will follow suit and we can get the company back on a strong footing in all the markets where we trade.”
“We would like to thank everyone involved including our lenders, the trustees, TPR and PPF for all their hard work over the last few weeks.”
“The Board would also like to thank all of our staff for their hard work and support during this challenging time.”
The news follows the closure announcement of the Miss Selfridge flagship store, on Oxford Street, London and demands from some of the UK’s largest commercial landlords for a larger stake in the Group.