Reports are that Arcadia Group is heading for further financial difficulties and has presented a ‘cost-cutting plan’ to the Pensions Regulator. There is a £727m deficit in Arcadia’s pension funds and with the stench caused by the never to be forgotten or forgiven BHS debacle acting as a reminder of Sir Philip Green’s questionable past actions, any restructuring plan will need the Pension Regulator’s (PR) express approval. The PR holds security on £210 million of Arcadia’s assets and forced him to inject £100 million from his personal funds into the company’s pension scheme over three years prior to agreeing to support its current CVA.
Arcadia has already announced that it will reduce its head office headcount by 500. It had furloughed all of its shopfloor staff members as well as all but a skeletal number of head office staff during lockdown, taking full advantage of the Government subsidy on offer.
The irony was not lost when pictures of Sir Philip Green, quayside, viewing yachts for sale in Monaco were splashed across the media.
Share