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| The six key questions that MPs must ask Sir Philip Green | |
| (about 1 hour later) | |
| Sir Philip Green faces tough questions over the collapse of BHS when he appears in front of MPs next week. And the stakes have been raised following the latest round of evidence in Westminster from Dominic Chappell, the former owner of BHS, and the retailer’s senior management team. | Sir Philip Green faces tough questions over the collapse of BHS when he appears in front of MPs next week. And the stakes have been raised following the latest round of evidence in Westminster from Dominic Chappell, the former owner of BHS, and the retailer’s senior management team. |
| These are the key questions that MPs now need to put to Green: | These are the key questions that MPs now need to put to Green: |
| Why were you in such a hurry to sell BHS? | Why were you in such a hurry to sell BHS? |
| Chappell told MPs the board of Arcadia, Green’s retail business, had decided it would not put any more money into BHS. So Green either needed to sell the company or put it into liquidation before a £50m quarterly rent bill turned up in March 2015. Is that correct? | Chappell told MPs the board of Arcadia, Green’s retail business, had decided it would not put any more money into BHS. So Green either needed to sell the company or put it into liquidation before a £50m quarterly rent bill turned up in March 2015. Is that correct? |
| Related: Former BHS owner Dominic Chappell denies threatening to kill CEO – as it happened | Related: Former BHS owner Dominic Chappell denies threatening to kill CEO – as it happened |
| Why did you think Dominic Chappell was an appropriate buyer? | Why did you think Dominic Chappell was an appropriate buyer? |
| Chappell told MPs he revealed to Arcadia that he had been declared bankrupt and admitted he had no retail experience. Why did Green then believe that Chappell could succeed where he had failed? Chappell claimed that Green “genuinely thought” Retail Acquisitions would fail to turn around BHS. | Chappell told MPs he revealed to Arcadia that he had been declared bankrupt and admitted he had no retail experience. Why did Green then believe that Chappell could succeed where he had failed? Chappell claimed that Green “genuinely thought” Retail Acquisitions would fail to turn around BHS. |
| Did you block Chappell from talking to the Pensions Regulator? | Did you block Chappell from talking to the Pensions Regulator? |
| According to Chappell, Green blocked him from talking to the Pensions Regulator until the deal to sell BHS was complete. That is odd given BHS’s pension scheme had a significant deficit and needed to be restructured. Chappell also claimed that Green’s ongoing wrangles with the Pensions Regulator were partly responsible for the collapse of the business. | According to Chappell, Green blocked him from talking to the Pensions Regulator until the deal to sell BHS was complete. That is odd given BHS’s pension scheme had a significant deficit and needed to be restructured. Chappell also claimed that Green’s ongoing wrangles with the Pensions Regulator were partly responsible for the collapse of the business. |
| Did you break a promise to arrange credit insurance for BHS? | Did you break a promise to arrange credit insurance for BHS? |
| Credit insurance is vital for a retailer. It means a supplier is insured when they sell products to a retailer, which protects them from unexpected events or the collapse of the retailer. Retailers without credit insurance have to pay funds up front to suppliers, which is a heavy burden. Chappell claims that Green promised to ensure that BHS had the credit insurers onside but it lost credit insurance, which put major pressure on the company’s balance sheet. | Credit insurance is vital for a retailer. It means a supplier is insured when they sell products to a retailer, which protects them from unexpected events or the collapse of the retailer. Retailers without credit insurance have to pay funds up front to suppliers, which is a heavy burden. Chappell claims that Green promised to ensure that BHS had the credit insurers onside but it lost credit insurance, which put major pressure on the company’s balance sheet. |
| How much did you know about Chappell’s deal with the Dellal family? | How much did you know about Chappell’s deal with the Dellal family? |
| Ace, a property company owned by the Dellal family, provided £35m to Chappell so he could demonstrate his credibility to Arcadia. However, evidence from the Dellals and Chappell shows this £35m was then meant to be spent on buying Marylebone House, the offices of BHS, which was owned by Green. The plan was for Green to sell the building to Chappell’s consortium Retail Acquisitions for £35m, paid for with the funds provided by Ace, with the building then being sold to Ace for £45m, which would then pay Retail Acquisitions another £10m. This looks like it could be a roundabout way of Green paying Retail Acquisitions £10m. Is that what it was? And why, when the deal fell apart, did Green feel the need to pay Retail Acquisitions £10m, as Chappell claimed? | Ace, a property company owned by the Dellal family, provided £35m to Chappell so he could demonstrate his credibility to Arcadia. However, evidence from the Dellals and Chappell shows this £35m was then meant to be spent on buying Marylebone House, the offices of BHS, which was owned by Green. The plan was for Green to sell the building to Chappell’s consortium Retail Acquisitions for £35m, paid for with the funds provided by Ace, with the building then being sold to Ace for £45m, which would then pay Retail Acquisitions another £10m. This looks like it could be a roundabout way of Green paying Retail Acquisitions £10m. Is that what it was? And why, when the deal fell apart, did Green feel the need to pay Retail Acquisitions £10m, as Chappell claimed? |
| Did you block a BHS rescue deal with Sports Direct? | Did you block a BHS rescue deal with Sports Direct? |
| Chappell said Green went “insane” when he found out BHS was in talks about Sports Direct buying the company, which was just days before it fell into administration. Was there a plausible deal in place? If so, why did you block it? | Chappell said Green went “insane” when he found out BHS was in talks about Sports Direct buying the company, which was just days before it fell into administration. Was there a plausible deal in place? If so, why did you block it? |