Austin Reed employees could have their pensions bailed out
Embattled retailer Austin Reed's final pension scheme could be bailed out by the Pension Protection Fund (PPF).
The news comes as all 120 Austin Reed stores are set to close by the end of June leading to 1,000 job losses after administrators AlixPartners did not receive any viable offers for the 116-year-old menswear retailer.
According to ITV, 300 members will receive reduced benefits as part of PPF's efforts to protect pensions.
Read more: Suitors wanted: Investors circle as Austin Reed goes into administration
A PPF spokesperson said: "The role of Pension Protection Fund is to ensure that members of defined benefit pension schemes are protected in the event that a scheme can no longer afford to pay their promised pension as a result of insolvency. This has happened to Austin Reed and the scheme is in our assessment period. Members are protected and will receive PPF levels of compensation."
Yesterday, City A.M. reported that the pensions lifeboat may have to take on the 33,000 UK pensioners of bankrupt Canadian telecoms giant Nortel Networks in addition to rescuing BHS and British Steel pensioners.