Property investors who helped bankroll BHS takeover to face MPs
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Version 0 of 1. The father and son behind the property company that helped to bankroll Dominic Chappell’s takeover of BHS have been called to appear in front of MPs. Guy and Alexander Dellal, who control Allied Commercial Exporters (Ace), will be quizzed over their relationship with Chappell and the nature of its agreements with him. Ace provided Chappell with the £35m needed to show Sir Philip Green’s Arcadia group that he was a credible buyer for BHS. The business then made millions of pounds from a series of property deals and loan agreements with the retailer. Frank Field, the chairman of the work and pensions committee, has written to the Dellals and asked them to appear in front of MPs on 7 June, the day before Chappell is due to give evidence. In the letter, Field lists a series of questions for the Dellals, the son and grandson of property investor “Black Jack” Dellal. The questions include how the family met Chappell, the terms of the £35m loan to him, and details about Ace’s property deals and loans with BHS. Field has also written to Grant Thornton and Olswang, the advisers to Chappell’s consortium Retail Acquisitions, asking for details about the fees they received from working on the sale of BHS. BHS collapsed into administration in April with a pension deficit valued at £571m. The retailer has been saddled with the deficit despite Green and other investors collecting more than £580m in dividends, rent and interest payments during his ownership. Green owned the retailer for 15 years until he sold it for £1 to Retail Acquisitions, a collection of little-known accountants and lawyers led by Chappell. Retail Acquisitions received millions of pounds of payments and loans from BHS during its 13-month ownership of the business. MPs on the business, innovation and skills committee and the work and pensions committee are investigating BHS’s demise. They have already heard from Arcadia executives, pension trustees and advisers who worked on the sale of the company to Retail Acquisitions. Chappell is scheduled to appear before MPs on 8 June, and Green a week later. The administrator Duff & Phelps is still in talks with a Portuguese-backed consortium about a rescue deal for BHS and its 11,000 workers. The consortium is led by Greg Tufnell, the former managing director of Mothercare and Burton, and the brother of the former England cricketer Phil Tufnell. Tufnell is working alongside Nick de Scossa, a Swiss-based banker, and José MariaSoares Bento. They have told administrators that a wealthy Portuguese family is backing their bid and willing to invest tens of millions of pounds in BHS. An announcement about a rescue deal is likely to come by the end of the week. |