Wholesaler loan probe

MPs have called for auditor PwC to claw back a £3.4m loan taken out by the former boss of collapsed wholesaler Palmer & Harvey.

It emerged last week that directors changed the terms of the interest-free loan so that it would not have to be repaid if the firm went bust.

The loan was used to fund a management buyout led by former chief executive Christopher etherington, but the changes meant it was only repayable in the event that etherington sold his shares, now deemed worthless as Palmer & Harvey is in administration.

Labour MP Frank Field, the chairman of the Work and Pensions Committee, said he would be writing to the auditor to find out its plans to claw back the loan.