Arcadia trustees near closing £1bn pensions deal

Arcadia’s pension trustees are reportedly close to securing a £1bn deal that will see them receive the retirement schemes promised by the group prior to its collapse, Sky News has reported. 

The trustees were said to be in “detailed” talks with Pension Insurance Corporation (PIC) about a deal to insure its retirement scheme payments for around £1bn of liabilities.

According to Sky, the discussions are “not thought to be exclusive” with PIC however, with other pension risk transfer specialists said to be holding talks with the trustees in recent weeks.

A spokesperson for Arcadia’s pension trustees told Sky: “Trustees are working hard to protect members’ benefits and are continuing to explore several options to ensure the best long-term outcome for members of both pension schemes. Discussions are ongoing and trustees will update members at the earliest opportunity.”

Arcadia workers who were saving pensions had previously been told that their savings could be recovered following the sale of property assets at the collapsed company.  

According to The Guardian in reports from 2021, trustees of the Arcadia pension scheme secured £173m to help fund their retirement through the selling of assets since the group failed – with the proceeds understood to be from Asos’s purchase of Topshop and other property offloads. 

Arcadia fell into administration in November 2020, placing over 12,000 jobs at risk. Since its collapse the majority of its brands have been sold to other retail chains – the most widely reported being; Boohoo’s £25.2m purchase of Burton, Dorothy Perkins and Wallis – and Asos’s £300m deal on Topshop Topman and Miss Selfridge. 

At the time, reports suggested the Arcadia pension scheme was given security over £210m of assets, including the sale of Topshop’s flagship store on Oxford street. 

The pension holders were expected to earn more from the scheme, however it was said that the amount raised would not be enough to cover an expected £300m deficit.