Work and Pensions Committee chair Frank Field has written to Sir Philip Green asking him to commit to seeking voluntary clearance from the Pensions Regulator before selling Arcadia Group. Field said he will also write to the Pensions Regulator.
Field noted that he had welcomed Green's agreement to double deficit contributions for the Arcadia scheme to £50m a year over 10 years, stating that the buyout deficit of the scheme was £1bn.
Reports about a planned sale of the group – which includes brands such as Topshop and Miss Selfridge – to Chinese textiles and fashion company Shandong Ruyi have led to member concerns about the impact on their pensions, said Field.
"I have heard from Arcadia scheme members concerned about their pensions becoming detached from your family's resources, especially given the experience of the BHS scheme following your disposal of that company," Field wrote.
He advised Green to seek clearance to avoid becoming the subject of regulatory interest again. "Erring on the side of caution would spare you another moral hazard investigation," Field said.
Green is a former owner of bankrupt retail chain BHS, which he had sold for £1. The pension situation of BHS scheme members, many of whom had to accept pension cuts, led to public outcries, a regulatory investigation and a select committee inquiry. Green eventually agreed to paying £363m towards the scheme deficit.
