THE COST OF STAYING A SIR £363M GREEN BACKS
Tycoon strikes BHS pension pot deal
SHAMED tycoon Sir Philip Green is finally coughing up £363million to settle the BHS pension scandal in a desperate bid to cling on to his knighthood.
The billionaire claimed his “voluntary contribution” – almost a year after the chain collapsed – would put worried pensioners’ “minds at rest and close this sorry chapter”.
But critics said it was a long overdue attempt by Green to try to hold on to his gong.
Labour MP Iain Wright said: “This doesn’t wipe the stains from his reputation clean.
“It’s like rewarding an arsonist who put his own fire
out.” Wright, chair man of the business select committee, said allowing Green to remain a Sir would be the “biggest case of cash for (honours) that we’ve ever seen”.
A total of 11,000 jobs were lost – 800 of them in 16 stores in Scotland – when BHS went under, leaving a pensions deficit of £571million.
Critics said Green’s settlement would still leave BHS staff worse off than they would have been under their old pension scheme.
And the £363million is less than the £400million of dividends Green’s family extracted from BHS in the early 2000s.
Lin Macmillan, who worked in the Aberdeen store in the 80s, was cautiously optimistic about the deal.
The 61-year-old, who launched a petition called “Sell the Yachts and Pay the Pensions” to increase the pressure on Green, said: “On the surface, it certainly looks very positive, but I think the devil will be in the detail.”
Shadow chancellor John McDonnell said: “This is a down payment. We will see how he behaves from here on.”
Former BHS worker Hannah Cullen, who tried to confront Green while he was sunning himself on his £100million yacht last summer, was clear about whether he deserved his knighthood.
She said: “Absolutely not. I know people who worked for BHS for 20 years whose confidence has been destroyed by what happened.”
Another industry insider said: “Sir Philip is writing a big, fat cheque and trying to walk away.”
Green, who controversially sold BHS for £1 to investors led by former bankrupt Dominic Chappell 13 months before it collapsed, reached a deal with the Pensions Regulator and the two pension schemes’ trustees.
His contribution from his £3.2billion offshore fortune will prevent members ending up in an industry rescue fund that would have seen their retirement pots slashed by 10 per cent.
John Hannett, of shop workers’ trade union Usdaw, said: “We are pleased he has finally put his hand in his pocket.”
Prime Minister Theresa May described the deal as a “positive outcome”.
Green said in a statement: “I would again like to apologise to the BHS pensioners for this last year of uncertainty.”
Sir Philip is writing a big, fat cheque and trying to walk away
INDUSTRY INSIDER