The regulator supported Green at Arcadia’s creditor vote earlier this month in exchange for Green investing £25m into Arcadia’s person fund, on top of the £50m he had already pledged to invest.

Arcadia’s pension black hole is around £560m.  Counsell’s decision to support Green was crucial in helping Arcadia to garner the 75% creditor support needed at its vote.

Work and Pensions Committee chair, and long time critic of Green, Frank Field told City AM: “Leonard Green, who bought a quarter of Arcadia when they thought things were going ok, sold it back to Philip Green for a buck. That is obviously saying these assets are worthless, so why did the regulator think differently from Leonard Green?”