MPs urge Sir Philip Green to cover Arcadia's pension shortfall

The chair of the UK’s Work and Pensions Committee has urged Arcadia boss Sir Philip Green to plug the group’s pension shortfall.

In a statement released yesterday, hours before the high street group fell into administration, MP Stephen Timms called for clarity on the status of a 385 million pound package agreed by the Pensions Regulator, Arcadia and the group’s owner last year.

“There is unquestionably a moral case for the Green family to do the right thing and guarantee Arcadia’s hardworking staff what is rightfully theirs, whatever happens this Christmas,” Timms wrote. “But the Pensions Regulator must also ensure that it is doing everything in its power to fight the corner of the pension scheme members.

“This is a crucial moment for the Regulator to show that it has learned the lessons of previous corporate collapses, such as those of BHS and British Steel. While staff will be worried about possible job losses, the Pensions Regulator must take firm and decisive action to protect them from fraudsters.”

BHS collapsed in 2016 just a year after Green offloaded the company in a controversial one pound deal. The collapse resulted in the loss of 11,000 jobs and a pension deficit of 571 million pounds.

Photo credit: FashionUnited