Pensions decision under fire

LEEDS Group has criticised the Pension Protection Fund for failing to agree a deal that would see it take over pension plans from cashmere business Dawson International.

Dawson, which is 29% owned by Leeds Group, has warned that it may go into administration as a result of the decision putting 200 jobs at risk.

The company has been in discussions with the Pensions Regulator and the Pension Protection Fund to try and negotiate entry for its defined benefit pension plans.

The Pension Protection Fund was set up by the last Government to guarantee pensions where companies go out of business.

Dawson has been told by the PPF the compensation it is offering in return for offloading the pensions is not enough.

In a statement, Leeds Group said: “Leeds Group has difficulty to agree to PPF reasoning that the plans deficit were too large compared to what Dawson offered in the compromise.

“Firstly it is not Dawson who has caused the deficit as that is managed by Trustees supervised by the Pensions Regulator with really no influence by the company and secondly, we cannot see the rational whereby PPF turn down an offer which will clearly give more than insolvency value and in addition will not put a lot of jobs at risk.”

Leeds Group director Jan Holstrom has resigned from the board of Dawsons following the decision.