Sir Philip Green has agreed to pay over £360m (€422m, $447m) to rescue the pension fund of one-time high-street giant BHS, almost a year after the retailer entered liquidation in April 2016.
In a statement released on Tuesday (28 February), the former BHS owner said he had made a "voluntary contribution" of up to £363m to "enable the trustees of the BHS Pension schemes to achieve a significantly better outcome" than the schemes entering the Pension Protection Fund.
"I have today made a voluntary contribution of up to £363 million to enable the trustees of the BHS pension schemes to achieve a significantly better outcome than the schemes entering the Pension Protection Fund, which was the goal from the outset," he said.
"The settlement follows lengthy, complex discussions with the Pensions Regulator and the PPF, both of which are satisfied with the solution that has been offered.
"To achieve a significantly better outcome than entering the PPF, the contribution required to achieve this long-term solution was arrived at by the actuaries for both The Regulator and the Trustees."
The 88-year-old firm collapsed in Jun, owing more than £1.1bn to various creditors, including a £571m pension deficit, £358m to landlords and £48.5m to suppliers.
In the same month, Green pledged to find a solution for the 20,000 people that were hit hard by the firm's demise.
The Pensions Regulator (TPR) confirmed it had agreed a settlement that will provide funding for a new independent pension scheme.
"The agreement we have reached with Sir Philip Green represents a strong outcome for the members of the BHS pension schemes," said TPR Chief Executive Lesley Titcomb.
"It takes account of the interests of both pensioners and the PPF, and brings a welcome level of certainty to present and future pensioners.
"Throughout our discussions with Sir Philip and his team, we have always been clear that we were determined to achieve the right outcome for members of the schemes both in terms of the amount and the structure of the settlement."
It is understood the new scheme would give pensioners the option of receiving the same starting pension they were promised by BHS, but higher benefits compared to those on offer from the Pension Protection Fund (PPF).