The Swindon-based Smiths News was formed following the firm's demerger from WHSmith in 2006
Smiths News has received a warning notice (WN) from The Pensions Regulator (TPR) in relation to the Tuffnells Parcels Express Pension Scheme.
The news wholesaler said TPR was considering issuing a Financial Support Direction (FSD) against Smiths News in relation to the Tuffnells scheme.
Smiths News owned Tuffnells Parcels Express, the sponsoring employer of the Tuffnells Scheme, between December 2014 and May 2020. Tuffnells entered administration on 12 June 2023.
Smiths News said that a number of other parties connected to Tuffnells are also identified in the WN as potential targets of TPR's powers.
The firm said that TPR has stated in the warning notice that the Section 75 debt of the Tuffnells scheme, the maximum amount the regulator can seek in aggregate from all targets, is now estimated at £3.5m.
Smiths News said its board is reviewing the warning notice with its advisers and will have an opportunity to make submissions to TPR in response. TPR will then consider responses before referring the case to its Determinations Panel, which will decide if an FSD should be issued against Smiths News or any other party named in the warning notice.
Smiths News said its board maintains the view the firm "acted reasonably throughout its time as parent of Tuffnells and that it was an overall net contributor of funding to Tuffnells during its period of ownership".
