Sir Philip Green’s retail empire suspending payments to pension scheme as it tries to cling on to cash in face of coronavirus lockdown
Sir Philip Green’s retail empire is suspending payments to its pension scheme as it desperately tries to cling on to cash in the face of the coronavirus lockdown.
Arcadia, which owns High Street brands including Topshop, Wallis and Dorothy Perkins, will halt the £2m monthly contributions which were agreed with The Pensions Regulator last summer to reduce a shortfall in the pension scheme.
Under pressure: Sir Philip Green’s Arcadia owns High Street brands including Topshop, Wallis and Dorothy Perkins
The deal saw Sir Philip’s wife, Tina, who technically owns Arcadia, agree to plug the gap in the scheme by also making her own £25m per year contributions.
She will continue to make those payments, despite the crisis hitting High Street sales.
But pensions expert John Ralfe, who advised MPs investigating the collapse of Sir Philip’s High Street chain BHS, estimates that if Arcadia were to go bust the current shortfall in its pension scheme would be around £350m to £400m.