TPR, working with the Pension Protection Fund (PPF) and pension scheme trustee, reached an agreement with the new owner, Purepay Retail Limited, for Pureplay to become the scheme’s statutory employer after it bought the business out of insolvency.
Without the rescue, the scheme would have transferred into the PPF or secured benefits with an insurer, or similar, which would likely have been in excess of PPF levels but below full benefits. Members are now expected to receive their full benefits under the scheme as they fall due.
Gaucho Rasmussen, Executive Director of Regulatory Compliance, at TPR said: “This case illustrates our commitment to protecting members and targeting our actions to have the most impact. Strong collaboration with the PPF and pension trustees and active dialogue with the new owner were decisive factors in achieving this rescue package. Members’ pensions are now more secure thanks to a new statutory employer, who has made a £7m lump sum payment into the scheme and agreed a recovery plan to help the scheme become fully funded in the next few years.
“Transparency between sponsoring employers and trustees is vital, especially when employers are facing financial difficulties. TPR won’t hesitate to take regulatory action, when necessary, but we welcome early dialogue with trustees and employers to resolve situations without needing to formally engage our anti-avoidance powers.”
The regulatory intervention report published today sets out that TPR engaged with the pension scheme trustee following the insolvency of its sole sponsoring employer EM2020 Realisations Limited (formerly known as The Edinburgh Woollen Mill Limited) in late 2020. Due to concerns about the circumstances leading up to the insolvency, TPR opened an enquiry and issued several statutory notices to gather evidence and consider whether to use its anti-avoidance powers. By mid-2021, it had gathered enough information to consider opening a formal anti-avoidance investigation.
Throughout the enquiry, TPR maintained a dialogue with Purepay Retail Limited, who had acquired the business from administration and worked closely with the scheme’s trustee. This collaborative approach proved pivotal in securing a scheme rescue in December 2024.
Taking over as the scheme’s statutory employer, Purepay made a lump-sum cash contribution of £7 million to the scheme and agreed a three-year recovery plan for the scheme’s latest triennial valuation. The scheme is now funded above PPF funding level and is expected to achieve full funding on a low dependency basis within the next three to four years.
TPR Report on Edinburgh Woolen Mill Retirements Benefit Scheme
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