Fashion tycoon Sir Philip Green is to overhaul his Arcadia fashion empire for the second time in little more than a year because of the impact of the coronavirus pandemic.

As part of the emergency measures the controversial retailer, whose Arcadia stable includes Topshop, Dorothy Perkins and Burton, has presented cost-cutting proposals to The Pensions Regulator, The Sunday Times reported.

The regulator’s approval is vital because of a £727m deficit in Arcadia’s pension funds.

The latest restructuring plans come just over a year after Arcadia won creditor support for a CVA, enabling it to shut 23 shops and reduce rents on hundreds of others.

However, Arcadia, like other fashion retailers, had to close its stores during lockdown.

It is thought that online sales have not been sufficient to make up for those lost while shops were shut, and that the group is likely to be hit by subdued demand and footfall even though stores have reopened.

The retailer furloughed all store staff and almost all those working at its headquarters during lockdown. Arcadia’s executives and board members took pay cuts of between 25% and 50%.

The Pensions Regulator also gave permission for Arcadia to suspend deficit repayments during the health emergency.

Arcadia has already revealed plans to cut 500 roles out of 2,500 at its HQ.