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Former BHS owner sent abusive message to chief exec after chain collapsed Former BHS owner sent abusive message to chief exec after chain collapsed
(35 minutes later)
Dominic Chappell, the former owner of BHS, sent an abusive text message to the chief executive of the retailer just hours after administrators announced that it would close all its shops.Dominic Chappell, the former owner of BHS, sent an abusive text message to the chief executive of the retailer just hours after administrators announced that it would close all its shops.
Chappell described Darren Topp as a “fucking prick” in the message and blamed him and Michael Hitchcock, BHS’s former finance director, for the demise of the business.Chappell described Darren Topp as a “fucking prick” in the message and blamed him and Michael Hitchcock, BHS’s former finance director, for the demise of the business.
The text message highlights the breakdown in relationship between the key players in the scandal. When contacted by the Guardian over the message, Chappell said he “meant absolutely every word” and claimed that Topp and Sir Philip Green “have driven this company to liquidation”.The text message highlights the breakdown in relationship between the key players in the scandal. When contacted by the Guardian over the message, Chappell said he “meant absolutely every word” and claimed that Topp and Sir Philip Green “have driven this company to liquidation”.
In the message to Topp, Chappell wrote: “Well done. I hope you and Michael are happy that you got the out come [sic] you wanted. You fucking prick.”In the message to Topp, Chappell wrote: “Well done. I hope you and Michael are happy that you got the out come [sic] you wanted. You fucking prick.”
Related: BHS rescue bid fails with loss of 11,000 jobsRelated: BHS rescue bid fails with loss of 11,000 jobs
A spokesman for BHS said the text message was a “new low” for Chappell and that he is a “fantasist”.A spokesman for BHS said the text message was a “new low” for Chappell and that he is a “fantasist”.
The message was sent on Thursday evening, some three hours after administrators said they had failed to secure a rescue deal for the 88-year-old business, its 163 stores, and 11,000 staff. Duff & Phelps, the administrator, is now looking for buyers for BHS stores, the brand, and its international business. Mike Ashley’s Sports Direct and discount chain Primark are among the retailers looking at buying shops. The message was sent on Thursday evening, three hours after administrators said they had failed to secure a rescue deal for the 88-year-old business, its 163 stores, and 11,000 staff. Duff & Phelps, the administrator, is now looking for buyers for BHS stores, the brand and its international business. Mike Ashley’s Sports Direct and discount chain Primark are among the retailers looking at buying shops.
Green is under growing pressure give up his company’s claim to £35m from the administration. Arcadia is a secured creditor to BHS along with HSBC, Barclays, Gordon Brothers and Grovepoint, who are owned roughly £120m in total. The secured creditors are ahead of employees, suppliers, landlords, and HMRC in the queue to be paid any proceeds from the sale of assets. The unsecured creditors, including the BHS pension scheme, are owed as much as £1.3bn. Green is under growing pressure give up his company’s claim to £35m from the administration. Arcadia is a secured creditor to BHS along with HSBC, Barclays, Gordon Brothers and Grovepoint, who are owned about £120m in total. The secured creditors are ahead of employees, suppliers, landlords, and HMRC in the queue to be paid any proceeds from the sale of assets. The unsecured creditors, including the BHS pension scheme, are owed as much as £1.3bn.
Lord Myners, the former chairman of Marks & Spencer, called on Green to take responsibility for the collapse of BHS by forgoing his position at the front of the creditors’ queue.Lord Myners, the former chairman of Marks & Spencer, called on Green to take responsibility for the collapse of BHS by forgoing his position at the front of the creditors’ queue.
“He could give up that security and make sure the money is used for the benefit of the employees and pensioners and not claim to be in the front of the queue,” Myners told BBC Radio 4’s Today programme.“He could give up that security and make sure the money is used for the benefit of the employees and pensioners and not claim to be in the front of the queue,” Myners told BBC Radio 4’s Today programme.
The head of the Institute of Directors accused Green of a “lamentable failure of behaviour” and called the downfall of BHS a “blight on the reputation of British business”. The head of the Institute of Directors, Simon Walker, accused Green of a “lamentable failure of behaviour” and called the downfall of BHS a “blight on the reputation of British business”. He added: “Serious questions need to be asked of almost everybody concerned in the running of BHS, the sale, and the company’s demise.”
Simon Walker added: “Serious questions need to be asked of almost everybody concerned in the running of BHS, the sale, and the company’s demise.”
Chappell, who will answer questions from MPs next Wednesday over the scandal, repeated his claims that Green could have helped to save BHS.Chappell, who will answer questions from MPs next Wednesday over the scandal, repeated his claims that Green could have helped to save BHS.
He said: “This company was totally and utterly saveable. It was through the actions of Philip and Darren Topp that it went into administration, and it was the actions of Philip and Darren that have caused this liquidation.He said: “This company was totally and utterly saveable. It was through the actions of Philip and Darren Topp that it went into administration, and it was the actions of Philip and Darren that have caused this liquidation.
“The only person that had a qualifying floating charge was Philip and he called the shots - he could have reduced or helped or backed up one of the bids going through to save 11,000 jobs, and he didn’t. I think the deals on the table were good enough to save the company but it was Philip pushing for his £35m.” “The only person that had a qualifying floating charge was Philip and he called the shots. He could have reduced or helped or backed up one of the bids going through to save 11,000 jobs and he didn’t. I think the deals on the table were good enough to save the company but it was Philip pushing for his £35m.”
Chappell, who said he is working on a bid for BHS’s international business, added: “I meant absolutely every word I said in that text to Darren. He and Philip have driven this company to liquidation. This company could have been saved if Philip helped us on the way through, instead of continuously hindering us. Darren was Philip’s pony, he played Philip’s tune continuously.” Chappell, who said he was working on a bid for BHS’s international business, added: “I meant absolutely every word I said in that text to Darren. He and Philip have driven this company to liquidation. This company could have been saved if Philip helped us on the way through, instead of continuously hindering us. Darren was Philip’s pony, he played Philip’s tune continuously.”
When asked how felt about 11,000 people losing their job, Chappell said: “Hideous. I can’t sleep at night. I am sick to my stomach with it. It didn’t need to be this way. It has been driven into the rocks by Darren fucking Topp and Philip Green.”When asked how felt about 11,000 people losing their job, Chappell said: “Hideous. I can’t sleep at night. I am sick to my stomach with it. It didn’t need to be this way. It has been driven into the rocks by Darren fucking Topp and Philip Green.”
Given the opportunity to apologise, he said: “I will make my position very clear on Wednesday.”Given the opportunity to apologise, he said: “I will make my position very clear on Wednesday.”
A BHS spokesman replied: “This is a new low for Dominic Chappell, proving once again he is a fantasist. Anyone with a conscience who has taken millions out of a failing business, leading to the loss of thousands of jobs, would hang their head in in shame, not send abusive text messages.” A BHS spokesman said: “This is a new low for Dominic Chappell, proving once again he is a fantasist. Anyone with a conscience who has taken millions out of a failing business, leading to the loss of thousands of jobs, would hang their head in in shame, not send abusive text messages.”
A source close to the administration denied that Green had prevented a rescue deal, saying the tycoon had gone “ballistic” when he found out that BHS would be wound down. Arcadia declined to comment.A source close to the administration denied that Green had prevented a rescue deal, saying the tycoon had gone “ballistic” when he found out that BHS would be wound down. Arcadia declined to comment.
The source said that the deal fell apart after a Portuguese-backed consortium led by Greg Tufnell, the brother of former England cricketer Phil Tufnell, failed to pay the £30m sale price by the deadline of Thursday morning.The source said that the deal fell apart after a Portuguese-backed consortium led by Greg Tufnell, the brother of former England cricketer Phil Tufnell, failed to pay the £30m sale price by the deadline of Thursday morning.
MPs on the work and pensions committee and the business, skills and innovation committee publishing further evidence on Friday relating to their investigation into the collapse of BHS. They raise further questions about why Green sold the company to Chappell, who has been declared bankrupt three times. MPs on the work and pensions committee and the business, skills and innovation committee published further evidence on Friday relating to their investigation into the collapse of BHS. They raise further questions about why Green sold the company to Chappell, who has been declared bankrupt three times.
Paul Budge, Arcadia’s finance director, told parliament last week that £120m had been made available to Retail Acquisitions by Farallon, a San Francisco-based hedge fund that invests in the debt of distressed businesses.Paul Budge, Arcadia’s finance director, told parliament last week that £120m had been made available to Retail Acquisitions by Farallon, a San Francisco-based hedge fund that invests in the debt of distressed businesses.
He said the credit facility made available by Farallon was important because it showed Retail Acquisitions had the funding to run BHS and “their intentions were serious in that they wanted to run the business as a going concern”.He said the credit facility made available by Farallon was important because it showed Retail Acquisitions had the funding to run BHS and “their intentions were serious in that they wanted to run the business as a going concern”.
But written evidence from Goldman Sachs’s Anthony Gutman, who gave informal advice to Arcadia, shows the banker had several reservations about Farallon’s funding, not least that “it was not clear that Farallon understood the existence of a pension deficit.” But written evidence from Goldman Sachs’s Anthony Gutman, who gave informal advice to Arcadia, shows the banker had several reservations about Farallon’s funding, not least that “it was not clear that Farallon understood the existence of a pension deficit”.
His detailed notes on the interaction between Green, Budge, Chappell and their advisers, which run from October 2014 until about a week before the deal was completed in March 2015, show that Green’s team twice called off the deal because of concerns about the buyers’ credibility and funding. It doesn’t shed light on why the deal went ahead despite concerns. His detailed notes on the interaction between Green, Budge, Chappell and their advisers, which run from October 2014 until about a week before the deal was completed in March 2015, show that Green’s team twice called off the deal because of concerns about the buyers’ credibility and funding. It does not shed light on why the deal went ahead despite concerns.
Frank Field, chairman of the work and pension committee, said the information raised a number of questions including why a bid backed by Farallon’s money had become the preferred deal despite concerns about their backing.Frank Field, chairman of the work and pension committee, said the information raised a number of questions including why a bid backed by Farallon’s money had become the preferred deal despite concerns about their backing.