Arcadia had £510m pension deficit when it collapsed


Arcadia Group fell into administration last year, putting up to 12,000 jobs at risk at the time

Sir Philip Green’s Arcadia Group reportedly had a pension deficit of £510 million when it collapsed in November – nearly £150 million more than expected.

In total, the former parent company of Topshop, Dorothy Perkins, Burton and Miss Selfridge, owed £800 million to creditors when it called in administrators from Deloitte.

Arcadia Group fell into administration last year, putting up to 12,000 jobs at risk at the time.

Earlier this month, Asos snapped up Arcadia fascias Topshop, Topman, Miss Selfridge and athleisure brand HIIT for £330 million, while Boohoo bought Dorothy Perkins, Wallis and Burton for £25.2 million.

Trade creditors, including fashion and shop fitting suppliers, were owed £163 million and landlords £36.5 million, while tax authorities lost out on £44.2 million, The Guardian reported.

Creditors are likely to receive only a small portion of the money owed.

The Green family’s Aldsworth Equity is set to receive a £50 million payout. The money is owed on an interest-free loan Aldsworth made to the group in 2019 at the time of an emergency restructure.

Trustees of the pension scheme said that they had since received £180 million from the sale of Arcadia assets as part of £210 million in secured funds agreed under a deal between the pensions regulator and the Green family.

It was reported earlier this week that Topshop and Topman creditors are facing losses of £176 million as Arcadia Group is wound up.

Suppliers based in countries such as China and Turkey and property owners have been hit the hardest by the collapse of the fashion empire.

Arcadia owes £219 million to creditors but there are only £42.4 million of assets available to pay them – which means they are likely to miss out on £176 million.

Gift card holders have also been left £4.5 million out of pocket.

Earlier in November, administrators had estimated that Arcadia owed £82.2 million to creditors when it collapsed.

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