MPs pressure pensions watchdog over Topshop owner's rumoured sale to Chinese giant Shandong Ruyi

Sir Philip Green is reported to be lining up a sale of Arcadia, which owns a host of high street brands - MPs have demanded reassurances over pension scheme

Sir Philip faced heavy criticism from MPs after selling BHS for £1 shortly before it collapsed with a huge pension deficit (Photos PA)

MPs have pressured The Pensions Regulator to reveal discussions it has had with Arcadia following reports that the Topshop owner could be sold to Chinese textile giant, Shandong Ruyi.

Sir Philip Green’s Arcadia owns a host of well-known high street names including Dorothy Perkins, Burton Menswear, Miss Selfridge, Evans and Wallis.

Frank Field, chair of the Commons Work and Pensions Committee, has asked TPR to inform him of any talks with the Arcadia pension scheme’s trustees about the sale after fears were raised about its large deficit.

Documents published by MPs last year put the deficit at £565m and the committee wants the regulator to ensure retirement savings will be protected in the event of a sale.

In a letter published by the committee on Monday, Mr Field also pushed for more information about the use of TPR's voluntary clearance system. This allows a company to obtain assurance from the regulator prior to a sale that it won’t intervene to demand more money for a pension scheme if a deal goes ahead.

“The voluntary clearance system has been used sparingly in recent times,” Mr Field wrote, in a letter to TPR chief executive Lesley Titcomb.

“Could you please confirm that you believe that undergoing voluntary clearance is responsible corporate behaviour; that the sale of a sponsor (...) of a large pension scheme with a substantial deficit would be an appropriate transaction for which to apply for voluntary clearance; and that you have been in contact with the trustees of the Arcadia scheme regarding the potential implications of the mooted sale.”

It comes after the Sunday Times reported in February that Sir Philip was looking to offload his retail business to Shandong Ruyi.

On Sunday, Sir Philip, whose wife Tina controls Arcadia, called on Mr Field to call a “truce” ending their spat which began with disagreements over the retail tycoon’s handling of the BHS pension scheme.

Sir Philip said: “I think it is now perfectly clear there is no truth whatsoever that the business is being sold to Shandong Ruyi, whom I had never heard of before the article and who have also confirmed to the Sunday Times directly, this is not the case.

“Mr Field, why don't we call a truce. You say it is not personal, it could not be more personal. Go and tackle Carillion or someone else.”