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Pressure mounts on Arcadia pension black hole

Sir Philip Green may have to increase payments to Arcadia’s pension scheme, as the business prepares for a possible company voluntary arrangement (CVA).

Arcadia Group appointed property advisers from consultancy GCW to work with Deloitte on restructuring the business last week.

If a CVA materialises, Green may have to pay more money into the Arcadia pension scheme in exchange for votes to pass the restructuring, The Telegraph reports.

The pension deficit at Arcadia was estimated to be £1bn in 2016.

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.

In a statement earlier this month, Arcadia said it would not close a “significant” number of stores: “None of the options being explored involve a significant number of redundancies or store closures. The business continues to operate as usual, including all payments being made to suppliers as normal.”

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Readers' comments (2)

  • Another business suffers and thousands of employees affected because P Green has bled it dry

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  • So the pension deficit is about £1bn? Remind me, how much was that massive dividend that Taveta took about 15 years ago?

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