Connect with us

Hi, what are you looking for?


Sale of Sir Philip Green’s Arcadia could leave taxpayer with £200m bill

bhs sale

The sale of Sir Philip Green’s Arcadia empire could leave the taxpayer and the pensions lifeboat with a bill for hundreds of millions of pounds, experts have warned.

Arcadia’s pension fund has a deficit of about £300 million, some of which will be covered as the individual chains are sold off. However, experts said that the Pension Protection Fund could be left with a £200 million hit after the various deals are done.

John Ralfe, an independent pensions consultant, said: “The final Arcadia pension scheme deficit depends on how much is raised by selling each of the retail businesses and how much is owed to other creditors. Based on what we know so far, I estimate the final deficit could be around £200 million.”

Green faced calls from MPs that he should be stripped of his knighthood after the collapse of BHS in 2016 until he was pressured into putting in £363 million to help plug its pension hole.

At Arcadia, he agreed a £385 million pensions support package in 2019 with the pensions regulator, including a £100 million payment from his wife Lady Green, the ultimate owner of the business. She is thought to have made the final cash payment in December. However, it is not clear whether the Green family will honour the remaining pension commitments after the break-up and sale of the business.

Asos, the online fashion retailer, is understood to be finalising a takeover of Topshop and Miss Selfridge that would cost about £250 million plus £40 million for stock. Meanwhile, Boohoo is in exclusive talks over Burton, Dorothy Perkins and Wallis. It is understood that the online retailer could pay about £25 million for the brands.

Arcadia collapsed owing creditors £750 million. As secured creditors on a £50 million interest-free loan made to the company in 2019, the Green family will be paid before any funds are divided between suppliers, landlords and HMRC. More than 1,000 unsecured creditors stand to receive a tiny fraction of the money owed to them.

The taxpayer may also have to step in to cover a £50 million bill for redundancy payments. According to a report administrators have calculated that £47.6 million is owed in statutory notice and redundancy payments for 13,000 staff.

Very few jobs are expected to be saved as both Asos and Boohoo are interested in acquiring Arcadia’s brands and online operations rather than its 444 shops.

Read more:
Sale of Sir Philip Green’s Arcadia could leave taxpayer with £200m bill

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



A Cotswold-based authentic Italian food business set up by a couple who initially dreamed of sharing the classic flavours of Italy with the local...


Filinvest Land, Inc. (FLI), one of the country’s largest real estate developers, reported P4.31 billion in revenues and other income for the first quarter...


Tesco is to hand pig farmers £6.6m in additional support, taking the total to £10m, after warnings that a slew of producers could go...


Elon Musk has suggested that he could seek to pay a lower price for Twitter, as the social media company’s would-be owner expressed further...


Tens of thousands of apprenticeships could be created and hundreds of millions of pounds saved if the flawed apprenticeships levy were reformed, according to...


The man accused of killing a doctor and wounding five other people in a shooting at a Taiwanese-American church banquet in California methodically planned the attack because he was upset over Chinese-Taiwanese tensions,...

You May Also Like


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...


Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...


As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.