Green’s rescue bid for Arcadia fails to impress
SIR PHILIP GREEN’S attempts to negotiate a rescue deal for his Arcadia fashion empire have been thrown into doubt after the pensions watchdog dismissed his offer of a £100million cash injection as inadequate.
The tycoon began a long-awaited restructuring plan on Wednesday after months of fraught negotiations with landlords and lenders.
The Green family have offered the extra cash to plug a combined £537million hole in its pension schemes in exchange for Arcadia reducing its annual contributions.
But the pensions regulator said: “We do not consider the proposals are sufficient to ensure that members of the scheme are adequately protected.”
It is understood that the regulator wants a faster repayment schedule and more cash pumped in.
Arcadia plans to close 23 of its 556 stores in the UK and Ireland, including branches of Miss Selfridge, Dorothy Perkins and Evans, as well as all of its 11 Topshop and Topman stores in the US.
The deal requires Arcadia’s lenders to vote on seven separate schemes known as company voluntary arrangements (CVA). Each needs the backing of 75 per cent of votes. It is understood that if one CVA fails, the business could topple into administration.
The Pension Protection Fund could not comment on whether it would back the plans because it was yet to receive CVA documents from Arcadia. It said: “We want to assure [members] that [we are] here to protect them.”
Arcadia Pension Schemes said: “All benefits are being paid in full. The trustees and their professional advisers are working hard to achieve the best outcome for scheme members.”