Pensions Regulator boss to face questions over Arcadia deal
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The Pension Regulator (TPR) boss, Charles Counsell is set to appear in front of the Work and Pensions Committee, regarding the settlement with Arcadia boss Philip Green last month.
The agreement, saw Green pledge an extra £25m per year to its company pension fund for three years, while in return the regulator would back the company voluntary agreement (CVA).
The CVA, which were passed earlier this month, saw Arcadia avoid possible administration, allowing for the company to restructure, seeing 23 stores close.
The Work and Pensions Committee wrote to the TPR after the CVA was signed, demanding “further clarity and assurances” over the assets that will be available to fill the pension scheme deficit, believed to be in the region of £350m.
Earlier this year, US equity firm Leonard Green and Partners, sold its 25% stake in the company back to Green, for 76p, having reportedly paid £350m for it back in 2012.
Frank Field, the chair of the Work and Pensions said to CityAm: “Leonard Green, who bought a quarter of Arcadia when they thought things were going ok, sold it back to Philip Green for a buck. That is obviously saying these assets are worthless, so why did the regulator think differently from Leonard Green?”
The TPR declined to comment on the meeting, or the comments made by Field.
