Sir Philip Green is planning to slash payments into the Arcadia Group staff pension fund to £25m a year as it seeks to restructure its financial operations, Sky News has reported.
The pension scheme is said to have a deficit of around £550m on a conventional-funding basis and £750m on a full-buyout basis.
The pension deficit at Arcadia was estimated to be £1bn in 2016.
Drapers has contacted Arcadia for comment.
It comes after it was announced last month that Green wants to close a tranche of Arcadia’s 570 shops, possibly via a company voluntary arrangement (CVA), and cut rents by an average of 30% on the rest.
Green hired advisers from Deloitte to explore a raft of store closures in January. The group has 571 stores and 388 concessions in its UK portfolio.
Arcadia has reportedly closed 210 shops over the last two years – around one-fifth of its store portfolio.