GreenS1 vs MPs: It’s about to get ugly...
Fierce critics of tycoon join the inquiry into BHS
THE row over BHS deepened last night after two bitter rivals of Sir Philip Green were called in to help investigate the failed retailer.
City grandees Lord Myners and Sir David Norgrove are to be appointed by MPs to help with the technical aspects of the probe into the multi-million pound high street collapse.
Both held senior roles at Marks & Spencer and helped scupper Sir Philip’s £10billion bid for the chain in 2004.
Their appointments are likely to inflame tensions further between the tycoon and the two investigating parliamentary committees ahead of a hearing on Monday.
Last night Labour MP Frank Field rejected Sir Philip’s demand that he resign for saying the tycoon should lose his knighthood, saying ‘Parliament is not for bullying’.
The bust-up centres around the estimated £571 million hole in the BHS pension scheme
‘Parliament is not for bullying’
and whether the Topshop boss should pay to prop it up.
Hostilities broke out on Thursday when Mr Field said Sir Philip, who ran BHS for 15 years before selling it for £1 in 2014, should be stripped of his knighthood if he was found to be at fault.
Sir Philip accused Mr Field and Iain Wright, chairman of the business, innovation and skills committee, of ‘predetermining’ the probe’s outcome.
He said: ‘These statements suggest you are leaping to conclusions before any evidence from any witness has been heard.’
Separately, he blasted Mr Field over his comments and demanded his resignation.
He said he was ‘horrified’ by Mr Field’s ‘outrageous outburst’, which he said showed Mr Field was ‘clearly prejudiced’.
The business and the work and pensions select committees are opening a joint hearing on Monday to examine whether the retirement savings of 20,000 past and present BHS staff were properly protected after the store went bust.
Around 11,000 jobs were put at risk when BHS went into administration and its pension fund needs £571million if it is to cover its commitments.
Sir Philip and Dominic Chappell, the former racing car driver and twice bankrupt who bought BHS for £1 last year, have agreed to appear in front of the committees.
Mr Chappell has been accused of a series of suspect transactions relating to BHS and his previous ventures. It was reported yesterday that he took out £300,000 from a company in Spain.
According to The Guardian, he took the cash from Olivia Petroleum for his personal use, without the approval of shareholders.
The allegations further fuel claims that Mr Chappell’s past was not properly checked when Sir Philip sold BHS to him.
Monday’s hearings will begin with evidence from a number of senior pensions experts including the Pension Protection Fund and the Pension Regulator. MPs are appointing a team of financial experts to lead the probe. Lord Myners has been City minister and chairman of the London School of Economics and led a review of practice at the Co-op.
He has already filed 11 questions in the House of Lords calling on the Government to investigate the issues at BHS.
Sir David has been chosen for his pensions expertise as he was previously a chairman of the Pensions Regulator and has sat on government commissions.
They will be appointed on Monday alongside a handful of other experts. They will not be a popular choice with Sir Philip following their role in his three attempted takeovers of M&S in 2004.
Lord Myners was chairman of the firm, and Sir David chaired the trustees of the pension fund, at the time of Sir Philip’s £9.1billion bid.
Sir Philip made a total of three failed attempts to buy M&S, two of which were rejected in a matter of hours. The final one was kicked out after a three-hour board meeting.
Last night Sir Philip did not wish to comment on the appointment of Sir David and Lord Myners.