Sir Philip Green and his family will give Arcadia Group’s pension scheme an additional £25m cash injection, helping to clear the way for a restructuring of the struggling retail empire.
The group has agreed to provide security for the scheme to the value of £210m, which includes an additional £25m agreed with the Pensions Regulator (TPR).
As previously agreed, Lady Green is also providing a voluntary contribution of £75m over three years plus an additional £25m, for a total of £100m.
The Trustees of the Arcadia Pension Schemes said: “The Trustees of the Arcadia Pension Schemes wish to thank Lady Cristina Green for the voluntary £100m cash support that she has announced, which alongside the £210m in security being provided to the schemes materially enhances the security of the benefits of the 9,500 Pension Scheme members. Having engaged extensively with the Pensions Regulator, the Pension Protection Fund and the Arcadia Board to consider its turnaround plan, the total package of support announced provides the best outcome achievable for the Schemes.”
Ian Grabiner, CEO of Arcadia Group, added: “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.”
“We would like to thank everyone involved including our lenders, the trustees, TPR and PPF for all their hard work over the last few weeks.”
“The Board would also like to thank all of our staff for their hard work and support during this challenging time.”