According to the Sunday Times, the retail group owned by Sir Philip Green has presented a cost-cutting plan to the Pensions Regulator in which it currently has a deficit of £727m in its pension funds.
The details of the cost-cutting measures are not yet known but it comes after the group cut around 500 head office roles, and reports in April that Green’s retail empire had approached banks and hedge funds in regards to borrowing £50m against its distribution centre in Daventry, Northamptonshire.
It also comes after the group pushed through a CVA last June which saw the group close 23 stores.
The group reached the agreement with the trustees of the pension schemes, the Pensions Regulator and the Pension Protection Fund, by which Arcadia Group promised to reduce its deficit repair contributions from £50m to £25m per year, for three years, with security granted to the value of £210m over certain assets of the group, to further support the schemes.
In March, the Pensions Regulator allowed the group to pause its deficit repayments in order for it to conserve cash during the outbreak.
Arcadia declined to comment on reports.