(Reuters) – Philip Green’s struggling Arcadia fashion group has secured the backing of Britain’s pensions regulator for a major restructuring, increasing the chances of his Topshop-to-Dorothy Perkins business avoiding a collapse into administration.

Late on Tuesday Arcadia said it would provide 210 million pounds ($267 million) of security over assets for its pension schemes, including an additional 25 million pounds to help close a funding deficit as agreed with the Pensions Regulator (TPR).

The move comes on top of a pledge by Tina Green, Philip Green’s Monaco-based wife and Arcadia’s ultimate owner, to contribute 75 million pounds over three years plus an additional 25 million pounds, making a total of 100 million pounds.

Arcadia creditors meet on Wednesday to vote on the retail group’s Company Voluntary Arrangement (CVA) restructuring, which involves store closures and rent cuts.

The restructuring would reduce Arcadia’s own annual contributions to its pension schemes from 50 million pounds to 25 million pounds for three years.

A string of British store groups have either gone out of business or announced plans to close shops over the last two years as they struggle with subdued consumer spending, rising labor costs and business property taxes and growing online competition.

CVAs, compromise agreements to avoid an administration or liquidation of a business, have been carried out by retailers including fashion chain New Look, floor coverings firm Carpetright, mother-and-baby goods group Mothercare and department store Debenhams.

Arcadia’s restructuring plan involves closing 23 of its 566 British and Irish stores, threatening 520 jobs, along with rent reductions and revised lease terms across 194 other locations.

The plan would also see Tina Green invest 50 million pounds of equity into Arcadia and provide affected landlords with the right to a pro-rata share of 20% of any equity value in the group from a future sale. Landlords will also be able to claim from a 40 million pound compromised creditor fund.

“BETTER PROTECTION”

“Given this enhanced level of (pension scheme) support, we now consider the updated CVA proposals are sufficient because they provide better protection for scheme members in these difficult circumstances,” TPR said, clearing the way for the Pension Protection Fund (PPF) to vote in favor of the CVA at the creditors meeting.

To get the CVA passed Arcadia still needs the backing of landlords and other creditors. The vote needs the support of more than 75% of unsecured creditors to pass.

“We hope that the landlords and other creditors will follow suit and we can get the company back on a strong footing in all the markets where we trade,” said Arcadia CEO Ian Grabiner.

Arcadia owns the Topshop and Topman brands as well as Dorothy Perkins, Miss Selfridge, Evans, Wallis and Outfit and employs about 18,000 people.

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