Sir Philip Green offers more money in last-ditch attempt to save Arcadia retail empire

Retail tycoon’s wife to stump up extra £30m in attempt to sweeten deal for landlords who could sink Arcadia this week

Thousands of jobs are at stake if the group goes into adminstration (AP)

Sir Philip Green has offered to stump up extra cash in a last-minute attempt to sweeten a deal proposed to his retail empire’s creditors.

On Friday, the Topshop tycoon offered to pay rents reduced by between 25 and 50 per cent, compared with 30 per cent and 70 per cent previously.

Landlords including shopping centre owner Intu had refused to back the original plans, forcing the retail tycoon to make concessions or face putting his companies into administration.

Sir Philip’s wife, Lady Green, who owns the Arcadia Group, will fund the difference in rent between the two proposals of about £9.5m initially, with the total cost expected to rise to £30m over three years.

A meeting of creditors was adjourned on Wednesday until 12 June to give Arcadia more time to negotiate a rescue deal that landlords could accept.

Ian Grabiner, chief executive of Arcadia, said: “Having already secured the support of our pensions trustees, trade creditors and a significant number of landlords, we hope these final revised terms will ensure the majority of landlords support the CVA (Company Voluntary Arrangement) at next week’s vote.

“Their support is vital for the long-term sustainability of the group, our 18,000 employees and our extensive network of loyal suppliers.”

At least one of the seven CVAs is understood to have gained sufficient support after the Pensions Regulator (TPR) agreed fresh terms for protecting Arcadia’s pension fund.

The remaining six will be decided upon next Wednesday with thousands of jobs on the line if a deal is not reached and Arcadia collapses into administration.

Julie Palmer, partner at insolvency specialists Begbies Traynor, said Sir Philip would likely be keen to avoid a full administration process. Formal insolvency could open up Arcadia’s directors to an investigation into their conduct, including whether they took money out of the business when it could not afford it.

If the CVAs do not go through, the retail mogul could put Arcadia into a pre-pack administration, which would see the group, or parts of it, sold on.

The buyer could be Sir Philip himself but it would also open up the potential for new bidders getting involved.

“The potential administrator would need to get the best value for creditors so if Philip Green was to do a pre-pack, he would look at the most valuable bits to cherry pick,” Ms Palmer explained.

“That would probably be Topman and Topshop which, while they are not what they were 10 years ago, are still the jewels in the crown of the Arcadia group.

“He would then leave behind bits he doesn’t want and get rid of them. That would include Miss Selfridge, Evans and Burton.

“The disadvantage of an administration is that there would be a bidding process in which parties would come forward. There are some obvious parties that could come through like Mike Ashley.”

Sir Philip’s long-time critic Frank Field warned on Friday against repeating “mistakes of the past” as he questioned whether the current arrangements for Arcadia’s pensions were enough.

In a letter to TPR, the MP said there still appears to be a “substantial deficit” in Arcadia’s pension schemes.

Mr Field, who chairs parliament’s Work and Pensions Committee, said the adjournment of the CVA vote this week was a “useful opportunity for us all to reflect on the CVA proposals”.

“You will understand that, given our experience with BHS, we are very keen indeed not to see a repeat of the mistakes of the past,” he said.