Sir Philip Green has offered an additional £185m from property assets to help reduce the Arcadia pension debt as part of a bid to win approval for its company voluntary arrangement (CVA).
The offer followed a letter written by Frank Field MP in which he asked for a commitment from Green to make a personal payment in the event that a deficit reduction plan proves insufficient.
The letter came after the Arcadia Group revealed its CVA proposals last week, which features 23 store closures and 520 jobs at risk. Since then, a further 25 stores will be shut down due to separate insolvency proceedings, including the flagship Miss Selfridge store on Oxford Street.
Major shareholder of Arcadia and Green’s wife, Lady Tina Green, is set to inject a further £50 million of equity into the business if the CVA gets approved, on top of the £50 million she has already loaned.
According to The Telegraph, in a 312-page document sent to landlords it was revealed that Arcadia’s earnings have crashed from £215m to just £30m in the last five years. The document also warns that if any of the CVAs are blocked the company affected would be “highly likely” to fall into administration.
According to the document, local councils across the country have claims worth £10.6m against the Arcadia Group.