Sir Philip Green’s fashion empire launched a company voluntary arrangement (CVA) yesterday, which it said would involve 23 store closures, rent reductions at 194 other shops and the potential closure or disposal of all 11 stores in the US.

As part of the restructuring proposals, which will be voted on by creditors on June 5, Arcadia said it would reduce its annual contributions to its pension schemes from £50m to £25m.

Green’s wife and major shareholder Lady Green would pump £100m into the scheme over the next three years to help address the shortfall, as part of the CVA agreement.

But the Pensions Regulator has hit out at those plans, dealing a blow to Green’s hopes of securing the required backing of 75% of Arcadia’s creditor base at the crunch ballot next month.