A REAL BACK OF AN ENVELOPE DEAL!

It is a hastily scribbled set of accounts that would struggle to get past any auditor. But this handwritten balance sheet was presented to the board of Sir Philip Green’s holding company Taveta last year as ‘proof’ that BHS would have access to £94million in the form of cash and loans after the sale to Dominic Chappell’s Retail Acquisitions Limited. Signed by Sir Philip and Mr Chappell on March 11 last year, the ‘final statement’ sheet was uncovered by MPs investigating the BHS collapse. In today’s report, MPs cast severe doubt on the figures. They point out that the £94.16million total (no.1 circled) was conveniently just over the £94million Sir Philip identified as being necessary working capital for new owners. At the top, is a string of liabilities adding up to £15.7million (2). These included gift cards and credit notes worth £6million along with demands for PAYE tax, VAT and National Insurance. MPs say the tax would have been due within weeks, making them a pressing concern. Details of two BHS property sales also provoke comment. The report reveals that the £4.92million (3) due for ‘Carlisle House’ was meaningless as this sale did not happen until 3 February 2016. Proceeds of a sale of another property, North West House, were entered as £32million (4) but £7million of this had already been ‘transferred elsewhere’. An entry of £5million (5) is described as ‘equity’. In fact, it was a personal loan taken out by Mr Chappell on what MPs describe as ‘extraordinary’ and ‘punitive’ terms.