Sir Philip Green has offered a further £185m from property assets to help reduce Arcadia Group’s pension deficit, in an effort to win approval for its company voluntary arrangement (CVA).
The offer was made in reaction to a letter from Green’s longtime critic Frank Field MP. The letter asked the Arcadia boss to make a commitment in the form of a personal payment should the proposed deficit reduction plan fail.
Arcadia’s pension debt is reportedly around £565m. The CVA proposal would reduce the contributions from the company to the pension schemes from £50m to £25m per year, for three years, with security over certain assets being granted in order to provide support to the schemes.
Sir Philip’s wife, Tina, has offered to bridge the shortfall with funding of £25m per year for the next three years, plus an additional £25m contribution, bringing her total payments into the schemes to £100m.
Twenty-five stores were earmarked for closure in the CVA proposal. However, a further 25 Miss Selfridge and Evans stores are likely to shutter as the property holding companies for both businesses face administration.