Sir Philip Green in the firing line over sale of his retail empire to Chinese suitor Shandong Ruyi

Former pensions minister Baroness Ros Altmann urged Sir Philip Green on Monday to avoid repeating his “mistakes” in handling BHS, as the fashion tycoon considers a sale of his Arcadia empire.

Green is reportedly in early-stage talks with Chinese textiles giant Shandong Ruyi, which has been on an acquisitions spree on the Continent. Reports of the deal have sparked fears over the future of Arcadia pensioners as the spectre of BHS, sold by Green before it went bust with a huge pension deficit, looms large. Arcadia has a £565 million pension deficit.

Altmann said: “I certainly hope he won’t make the same mistakes again and will properly engage and comply with the Pension Regulator’s demands about scheme funding before concluding any deal.” Frank Field, chairman of the Work and Pensions Committee, said MPs will scrutinise the schemes at Arcadia, which owns brands including Burton and Topshop.

Gavin Haig, the veteran retailer who knows Shandong Ruyi well, moved to allay fears a new owner would cut jobs. “Shandong Ruyi are respected. They are about growth, not restructuring, and turnaround and scaling,” he said. Haig ran Belstaff, whose sister company Bally was recently bought by Shandong Ruyi.

Green declined to comment.