The business tycoon and his family have previously pledged to pump up the Arcadia retirement scheme with a £100million boost, but has now been warned by the pensions watchdog that more money is needed. Sky News reports how Sir Philip and his advisors were approached with the demand by The Pensions Regulator (TPR). The extra cash would see a £360million aggregate pension funding package increased to £410million. Roughly £185million from closures and other assets also believed to be going into the retirement scheme.
The company would also pay in £25million in annual contributions over the next three years.
Sir Philip and his team are due to discuss the demand through the weekend and into the early part of next week.
The future of the Arcadia empire is currently hanging in the balace, with creditors due to vote next Wednesday on a series of company voluntary arrangement (CVA) proposals.
But sources claim TPR will not back the plans unless Sir Philip meets calls for the extra £50million, according to Sky News.
Under the proposals outlined last week, almost 50 stores – including Topshop, Burton and Dorothy Perkins – will close for good.
Arcadia had initially announced plans to close 23 stores across the UK and Ireland as part of a major restructure.
But in an update this week, it emerged 25 more stores will go on top of this original list, under separate insolvency proceedings, with Miss Selfirdge and Evans bearing the brunt of the closures.
Rent will also be slashed at another 194 outlets to further reduce costs.
Directors of the group are due to meet on June 5, where 75 percent of creditors will need to approve the store closures.
The group announced last week it will also say goodbye to its portfolio of 11 Topshop and Topman stores in the United States.
As part of the CVA to shut the original list of 23 stores, Lady Green, wife of Sir Philip and ultimate owner of Arcadia, has offered landlords a 20 percent stake of any proceeds if the group is eventually sold.
Arcadia chief executive Ian Grabiner said last week: “Against a backdrop of challenging retail headwinds, changing consumer habits and ever-increasing online competition, we have seriously considered all possible strategic options to return the group to a stable financial platform.
“This has been a tough but necessary decision for the business.
“We will ensure all potentially affected colleagues are kept fully informed as we seek approval from our creditors on today’s CVA proposals.”
Arcadia Group has been contacted for comment by Express.co.uk.
UK AND IRELAND ARCADIA GROUP CLOSURES ANNOUNCED LAST WEEK:
Aberdeen (Dorothy Perkins and Burton)
Ashton-under-Lyne (Topshop and Topman)
Bedford (Topshop and Topman)
Bluewater, Kent (Miss Selfridge)
Cork (Dorothy Perkins and Evans)
Dublin, St Stephen’s Green (Topshop and Miss Selfridge)
Dublin, Jervis (Topshop and Topman)
Dublin, Henry Street (Evans and Wallis)
Dublin, Liffey Valley (Wallis)
Fareham (Topshop and Topman)
Galway (Miss Selfridge)
Glasgow, Buchanan Street (Burton and Topman)
Luton (Topshop and Topman)
Newcastle, Northumberland Street (Outfit)
Nuneaton (Topshop and Topman)
Reading (Dorothy Perkins and Burton)
Salisbury (Topshop and Topman)
Southend (Miss Selfridge)
Stirling (Dorothy Perkins and Burton)
Swindon (Miss Selfridge, Wallis, Evans)
Swindon (Dorothy Perkins and Burton)
York (Dorothy Perkins and Burton)