UK's The Pensions Regulator (TPR) published a report on its intervention to secure a rescue of the Edinburgh Woollen Mill Ltd Retirement Benefits Scheme after its sponsoring employer became insolvent, with the scheme now expected to deliver full benefits to members as they fall due. The package involves Purepay Retail Limited, which bought the business out of insolvency, becoming the scheme’s statutory employer to avoid an outcome such as entry to the Pension Protection Fund (PPF). Following the insolvency of the scheme’s sole sponsoring employer, EM2020 Realisations Limited (formerly The Edinburgh Woollen Mill Limited), in late 2020, TPR opened an enquiry, issued statutory notices and gathered evidence to assess potential use of its anti-avoidance powers, reaching a point by mid-2021 where a formal anti-avoidance investigation was under consideration. Continued engagement with Purepay and the trustee culminated in a December 2024 rescue under which Purepay paid GBP 7 million into the scheme and agreed a three-year recovery plan for the latest triennial valuation; the scheme is now funded above PPF level and is expected to reach full funding on a low dependency basis within three to four years.
The Pensions Regulator 2025-08-26
UK's The Pensions Regulator publishes intervention report on Edinburgh Woollen Mill scheme rescue backed by a GBP 7m payment
The Pensions Regulator (TPR) intervened to secure the Edinburgh Woollen Mill Ltd Retirement Benefits Scheme after its sponsoring employer's insolvency. Purepay Retail Limited, which acquired the business, became the scheme’s statutory employer, contributing GBP 7 million and agreeing to a three-year recovery plan. The scheme is now funded above Pension Protection Fund level and is expected to achieve full funding on a low dependency basis within three to four years.