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Coronavirus: Arcadia to defer pension payments

Sir Philip Green’s Arcadia Group is planning to defer a series of contributions into its pension scheme in a bid to conserve cash through the coronavirus crisis. 

Arcadia Group, the parent company of brands including Topshop, Wallis, Burton and Dorothy Perkins, is to postpone payments based on the current outlook for the Covid-19 situation. 

It is understood that Lady Green will continue to make her contributions, as agreed with The Pensions Regulator, on time. 

Following Arcadia’s company voluntary arrangement, the company is due to pay £25m annually into its pension scheme for three years. This would equate to monthly payments of just over £2m. 

Lady Green is to provide an additional £100m of cash into the schemes to help bridge the shortfall, with funding of £25m per year for the coming three years, plus an additional £25m contribution.

This means that with the now deferred payments, the pension contributions have been halved. It is understood that The Pensions Regulator has agreed to this. 

Drapers revealed this weekend that Arcadia Group has written to suppliers to inform them that it will be cancelling all orders and extending payment terms, in a bid to protect the business during the coronavirus outbreak.

The letters, sent to suppliers on 27 March and seen by Drapers, state that all orders will be cancelled until further notice, and payment terms will be extended by 30 days, with immediate effect. The standard terms will therefore be 90 days. 

Arcadia has declined to comment. The Pensions Regulator has declined to comment. 

 

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