The pension watchdog is calling for an extra £50m injection from Arcadia into its retirement scheme in exchange for votes to prevent the failure of its financial restructuring proposal.
The Pensions Regulator has reportedly told Arcadia it wants a further £50m contribution to the fund on top of the £100m injection offered last week in exchange for waving through the financial restructuring proposals put forward in its company voluntary arrangement, according to Sky News.
This would bring the total aggregate pension funding package to £410m.
Sir Philip Green’s fashion stable wants to halve the annual contributions it makes to its pension scheme from £50m to £25m, with the shortfall being made up by a £100m cash injection by Green’s wife and major shareholder, Lady Tina Green, over the next three years.
Earlier in the week, Green offered £185m in additional funds primarily made up of property assets to reduce Arcadia’s overall deficit in a bid to win approval.
However, as Retail Week reported on Wednesday, Arcadia appears unwilling to budge on offering anything further to the pension watchdog, as the June 5 date for the CVA vote looms.
Both The Pensions Regulator and Pension Protection Fund (PPF) declined to comment.
The PPF is one of the largest unsecured creditors to Arcadia Group Ltd – one of seven separate operating and holding companies within the complex group to launch a CVA.
Arcadia needs 75% of creditors to give the green light to all seven CVAs in order for its restructuring plan to proceed.
The pensions watchdog and fund are both calling for the extra £50m from Arcadia in exchange for votes.