Chappell said he had agreed a "deal in principle" with the regulator and the Pension Protection Fund, the government-backed lifeboat scheme, to restructure the pension fund before BHS collapsed.
This week the finance ministry provided a partial answer, in the form of a scheme to restructure the liabilities of local governments, the most indebted of China's public institutions.Local governments will be allowed to swap 1 trillion yuan ($160 billion) of their existing high-interest debts for lower-cost bonds.
Under a company voluntary arrangement (CVA), a controversial type of restructuring scheme, a further 166 stores would continue to trade as normal, including Austin Reed's flagship store on Regent Street in London.
Tony Clare, a partner at accountants Deloitte who was advising Arcadia about its pension schemes, said talks about restructuring the BHS pension scheme were put on hold in September 2014 so that the retailer could focus on improving trade during the Christmas period.
While restructuring incentives schemes can be effective in the short-term, they require significant investment and political commitment, may not be sustainable, and may not adequately address the root problems associated with brain drain.
The UK business is only likely to be included in the ThyssenKrupp deal if the pension scheme can be restructured.
The pension trustees behind Tata Steel UK have said the scheme can be restructured without entering the Pension Protection Fund (PPF), boosting the prospects of a rescue deal for the company.
Tata is in talks with the German company ThyssenKrupp about merging their European steel operations, but the UK business is only likely to be included if the pension scheme can be restructured.
If the pension scheme can be restructured, the government believes Tata Steel can be persuaded to keep its UK business, which includes the Port Talbot works in south Wales and about a dozen other sites.
However, Tata Steel and ThyssenKrupp will include the UK operations in the tie-up only if the pension scheme can be restructured and the package of support from the government – which includes loans on commercial terms worth up to £1bn – can be secured.
