Arcadia agrees to provide 210 million sterling in security to its pension schemes

 Arcadia agrees to provide 210 million sterling in security to its pension schemes

(Reuters) - Arcadia Group agreed to provide 210 million pounds ($266.64 million) in security to its pension schemes, which includes an additional 25 million pounds agreed with The Pensions Regulator, the company said in a statement on Tuesday.

The agreed security amount is in addition to the 100 million pound cash support that Christina Green, British retail businessman Philip Green's wife, agreed to provide to the scheme in May.

The Pensions Regulator said in a separate statement on Tuesday that the updated Company Voluntary Arrangement (CVA) proposals - mechanisms that allow the business to avoid insolvency - are sufficient as they provide better protection for scheme members.

The company still needs other creditors to back its CVA proposals at Wednesday's creditors' meeting.

Last month, Christina Green, who is also a shareholder in the group, had offered to bridge the pension scheme's shortfall with 25 million pounds per year for the next three years, plus another 25 million pound contribution, resulting in total payments into the scheme of 100 million pounds.

Arcadia, which runs fashion retailers such as Dorothy Perkins, Miss Selfridge and Evans, had said it would close 23 of its 566 stores in Britain and Ireland.

(Reporting by Maria Ponnezhath and Ishita Chigilli Palli in Bengaluru; editing by Edmund Blair and James Dalgleish)

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Updated Date: Jun 05, 2019 05:05:59 IST