Green may face MP grilling over pensions deficit

SIR Philip Green could be hauled before MPs if he fails to plug a £350million black hole in his high street empire’s pension scheme.

Arcadia, which includes Topshop, Topman, Burton and Dorothy Perkins, is expected to collapse into administration this week, possibly today.

The biggest high street casualty since the start of the coronavirus pandemic would put 15,000 jobs at risk.

Pressure is mounting on Sir Philip to cough up to ensure the 10,000 members of Arcadia’s pension fund are not left out of pocket.

The scheme would be eligible for the Pension Protection Fund if the company goes bust.

However, members risk the value of their retirement pots being cut by up a quarter.

Sir Philip’s reputation as king of the high street was left in tatters after the collapse of BHS.

He sold the department store to former bankrupt Dominic Chappell for the token sum of £1 in 2016.

Amid calls for him to be stripped of his knighthood, Green agreed to pump £363million into BHS pensions.

At the time the Monaco-based tycoon faced an infamous grilling by MPs probing the BHS scandal, telling one MP to “stop staring” at him while he was giving evidence. Stephen Timms, chairman of the Work and Pensions Select Committee, said he was ready to call the tycoon back to testify again if needed. He said: “I hope it is not going to come to that, but if we have to, of course we will be prepared to.”

Experts say Sir Philip, who the Mirror revealed is planning to spend Christmas at a luxury resort in the Maldives where villas cost up to £30,000 a night, would not be technically liable to deal with the pension deficit because the business had gone into administration.

But Mr Timms added: “Whatever happens to the group, the Green family must make good the deficit in the Arcadia pension fund.”

If Arcadia goes into administration today it could cost taxpayers tens of millions, because tomorrow the “Crown Preference” rule is reintroduced.

It puts HMRC at the front of the queue for taxes owed by bust companies. Arcadia suppliers are also owed an estimated £250million.

Billionaire retail baron Mike Ashley, Next and Marks & Spencer have been named as possible buyers for parts of the Arcadia group’s assets.

Debenhams, where Arcadia does a lot of trade, is also on the brink, with hopes of a rescue by JD Sports fading.

HE’S OFF Our hol story

TAKE A DAY OFF Casual Philip in Monaco yesterday

The Green family must make good the deficit

STEPHEN TIMMS MP ON ARCADIA’S PENSION HOLE