Arcadia boss Sir Philip Green could be asked to pay £280m to bridge the gap in BHS’s pension deficit, three times the amount he has offered to pay so far.
Sir Philip Green
The Pensions Regulator is reportedly pursuing the retailer for the cash after he sold the struggling high street chain for £1 a year ago.
BHS’s retirement schemes have a shortfall of £571m and will soon enter the Pension Protection Fund (PPF) as the firm tries to cut costs and negotiates lower rents with landlords.
The cost it would take to cover the Pension Protection Fund liabilities, according to The Sunday Times, is £300m and Green could be asked to pay £280m, with BHS covering the remaining £20m.
Green has offered £80m to the fund so far.
The move into the PPF leaves about 13,000 current and former staff below retirement age facing cuts of at least 10% to their benefits.