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Summary
- Lady Tina Green will be paying £50 million cash to bridge the pension deficit gap of Acradia Group
- Lady Green was the official owner of the retail giant Arcadia Group until it fell into administration early this week
In a move to bridge the pension deficit gap of Acradia Group, Lady Tina Green has said she would pay £50 million cash, which was not due for another 10 months.
Lady Green, the wife of Sir Philip Green, was the official owner of the retail company until it fell into administration early this week. The development led to over 9,000 members of the group’s pension scheme, including current and former, facing a likely cut of around 20 per cent of their current benefits.
Last year, Lady Green had promised to pay £100 million into the retail firm’s pension scheme in three parts. Out of it, two instalments worth of £25 million each has already been paid, while the final and the third instalment worth of £50 million was remaining.
Now, Lady Green will be paying the third instalment worth £50 million within the next 10 days that will complete her commitment of £100 million payment. However, the retail giant’s overall pension deficit is approximately around £350 million.
Meanwhile, Alok Sharma, British Secretary of State for Business, Energy and Industrial Strategy, has reportedly written to the Insolvency Service urging them to examine the behaviour and the conduct of the Arcadia Group’s directors to check if their activities have harmed the pension schemes.
The Pensions Regulator’s spokesperson said the regulatory body is working with the trustees, directors, PPF and other important officials in order to safeguard the status of the Arcadia pension schemes’ members.
Earlier, MPs had urged to carry out in-depth details of the June 2019 restructuring deal between Ledu Green, Pensions Regulator, Arcadia, and the PPF, which allowed the retail group to get rid of bankruptcy.
Also read: Arcadia Fashion Group Working on Contingency Plan to Avert Collapse
A few days back, it was Arcadia, the fashion empire of Sir Philip Green’s has failed to generate enough cash to pay its debts and had to hire an administrator from Deloitte, which will be running its stores till Christmas. The collapse of one of the largest retailers in the UK has put 13,000 jobs at risk.
