Philip Green agrees deal with pensions regulator over Arcadia

Embattled former billionaire Philip Green on Wednesday agreed to pay an extra £25m to the Arcadia pension scheme as he tried to save his retail empire from falling into administration.

Arcadia said it had reached a deal with The Pensions Regulator (TPR) and the fund's trustees to provide security over assets worth £210m. It will also make contributions of £75m over three years to help bridge the £750m fund deficit.

Green's wife Tina, legally Arcadia's largest shareholder and owner, pledged a voluntary contribution of £100m, the company said in a statement.

Arcadia creditors were scheduled to meet on Wednesday to vote on a Company Voluntary Arrangement (CVA) restructuring plan, including up to 50 store closures and rent cuts.

TPR had warned Green he needed to top up his contribution if they were to support the CVA. On Tuesday the Pension Protection Fund, a major creditor whose support is key for the group's survival, said it would support his plan to restructure his struggling business.

"Given this enhanced level of (pension scheme) support, we now consider the updated CVA proposals are sufficient because they provide better protection for scheme members in these difficult circumstances," TPR said.

Arcadia owns the Top Shop, Burton, Dorothy Perkins and Miss Selfridge brands and employs 18,000 people. Around 200 landlords have been asked to swallow large rent cuts of up to 70% in order for Green's empire to survive as he warned that the group would collapse without the restructuring. They would get a pro-rate equity share of 20% of the company under the proposed rescue plan.

“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,” said Arcadia chief executive Ian Grabiner.

Green's reputation was severely damaged after the 2016 collapse of High Street chain BHS a year after its sale by Arcadia to the thrice bankrupt Dominic Chappell for £1. Public and parliamentary outrage forced the businessman to pay £363m to help bridge the fund's £570m deficit.

Chappell was last year found guilty of failing to provide documents to TPR and fined £50,000.