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You can find the current article at its original source at https://www.theguardian.com/politics/live/2016/jun/15/sir-philip-green-questioned-by-mps-over-bhs-collapse-live-updates
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| Version 7 | Version 8 |
|---|---|
| Sir Philip Green: 'stupid and idiotic' decisions made over BHS - live updates | Sir Philip Green: 'stupid and idiotic' decisions made over BHS - live updates |
| (35 minutes later) | |
| 1.19pm BST | |
| 13:19 | |
| Green confirms that he had planned to sell Marylebone House, BHS’s HQ, to Chappell for £35m. | |
| [This is a crucial point; Chappell had taken a £35m loan from the Dellal family of property investors, and was planning to sell it onto them for £45m]. | |
| Green suggests he didn’t originally know Chappell was planning to turn a quick profit; even though £8.5m of profits from the deal appear on the BHS term sheet. | |
| Q: So why did you change your mind and sell Marylebone House to someone else? | |
| Once word spread in the property market that we were selling it, we received better offers and realised it was worth more, Green replies. | |
| But.... | |
| Marylebone House was owned by Wilton Equity, an offshore group owned by Green’s wife Lady Tina. And it emerged last week that the property was actually sold by Wilton, to Arcadia, reportedly yielding a profit of £21m. | |
| "This has got nothing to do with BHS" Green says over sale of Marylebone House, BHS offices, which netted £53m for Lady Green | |
| 1.09pm BST | |
| 13:09 | |
| The committee are now turning to the financial help which Sir Philip Green provided to Dominic Chappell’s Retail Acquisitions to help the BHS purchase go through. | |
| MP Quin says much of the cash Green left on BHS's balance sheet was "delusional" including proceeds from sale of Carlisle store | |
| Labour’s Richard Fuller says that Chappell’s term sheet, which claimed to have £120m of funding, actually only had £40m. So how did Green not spot the problems? | |
| Green repeats that he wasn’t involved in the sale until he’d been convinced that Chappell was genuine. | |
| Q: So is it a fair observation that a “wrong ‘un” got through the system because you relied on advisers for all the detail? | |
| That’s your observation, Green replies. | |
| But again, he’s spreading the blame to other people...while claiming he’s not blaming anyone..... | |
| MP: term sheet masquerading a £40mn loan as £120mn | |
| 1.00pm BST | |
| 13:00 | |
| Iain Wight then calls Green up for his refusal to say if any of his executives raised any concerns about the Chappell deal. | |
| You seem a dominant character, but also extraordinarily thin-skinned when asked quite courteous questions, Sir Philip .... | |
| This seems to prick the Arcadia boss: | |
| Iain Wright: Green seems extraordinarily thin skinned to simple questions. "Like what!!!" Green says, somewhat proving his point | |
| Wright’s point is that some Arcadia lieutenants might have been scared to raise a red flag to the Chappell deal. | |
| 12.58pm BST | |
| 12:58 | |
| Green adds that “unfortunately, we found the wrong guy” when they sold BHS to Dominic Chappell. What happened subsequently is “beyond horrible”. | |
| 12.54pm BST | |
| 12:54 | |
| Green: I wouldn't do Chappell deal again | |
| Iain Wright MP tries to pin Green down. | |
| Q: Was good corporate governance followed in the sale of BHS? | |
| We’re going this again, Green asks, incredulously. | |
| He says that Arcadia put good people on the sale -- they should have been able to do the right deal. | |
| Q: Are you still happy with Lord Grabiner (Arcadia’s chairman, who didn’t attend the meeting where BHS was sold)? | |
| Yes, Green insists. Grabiner is highly capable, and highly respected... | |
| “was”, chips in one MP. Grabiner’s reputation has changed, Sir Philip.... | |
| Green concedes that he shouldn’t have sold BHS to Chappell, but insists that advisers -- both his and Chappell’s – are to blame. | |
| Would I do that deal again, no. Am I sorry we did that deal, yes. | |
| 12.51pm BST | |
| 12:51 | |
| Richard Graham MP calls up Green about his claim that Chappell lives in Fantasy Land... | |
| ..I never said that, claims Green, astonishingly. | |
| Yes you did, the MPs chorus. It’ll be in the record (and the liveblog, five short minutes ago) | |
| Graham then tries to put another question about the decision to sell BHS with an unresolved pension deficit, and Green isn’t happy at all. He repeats that he’s going to find a solution, and blames the pension regulator. | |
| Sir, the regulator has never called me! Do you want me to write down my mobile phone number and email so you can pass it on? | |
| Sir Phil kicking off.Richard Graham suggests he sold BHS to get rid of pension liability."withdraw that"pretty obvious question to me. | |
| Updated | |
| at 12.55pm BST | |
| 12.46pm BST | 12.46pm BST |
| 12:46 | 12:46 |
| Green is now dishing out fashion advice to Jeremy Quin. | Green is now dishing out fashion advice to Jeremy Quin. |
| Green now telling MP to put glasses back on "you look better with your glasses on" - really don't think baiting MPs going to help him | Green now telling MP to put glasses back on "you look better with your glasses on" - really don't think baiting MPs going to help him |
| Updated | Updated |
| at 12.46pm BST | at 12.46pm BST |
| 12.43pm BST | 12.43pm BST |
| 12:43 | 12:43 |
| The committee continue to push Sir Philip Green about exactly how closely he knew Dominic Chappell, and when. | |
| Green insists that he first met Chappell on February 3rd 2015. | Green insists that he first met Chappell on February 3rd 2015. |
| Q: Meet often socially before then? | Q: Meet often socially before then? |
| Green makes a “zero” sign with his finger and thumb. | Green makes a “zero” sign with his finger and thumb. |
| Q: So why was Chappell telling his mates in 2014 that he was going to buy BHS? Was it a “fantasy land” idea? | Q: So why was Chappell telling his mates in 2014 that he was going to buy BHS? Was it a “fantasy land” idea? |
| Green suggests Chappell is a permanent resident of fantasy land..... | Green suggests Chappell is a permanent resident of fantasy land..... |
| Was Chappell's assertion that he had done personal deal with Green "fantasy land" asks MP. "Ask him, he lives there," says Green | Was Chappell's assertion that he had done personal deal with Green "fantasy land" asks MP. "Ask him, he lives there," says Green |
| [Anyone know if Fantasy Land is a tax haven, ala Monaco?] | [Anyone know if Fantasy Land is a tax haven, ala Monaco?] |
| Updated | Updated |
| at 12.55pm BST | |
| 12.41pm BST | 12.41pm BST |
| 12:41 | 12:41 |
| Green may be getting more confident - he tells Richard Fuller to ‘relax’ and stop butting in. | Green may be getting more confident - he tells Richard Fuller to ‘relax’ and stop butting in. |
| "Richard, you'll get your moment, relax," Sir Philip now openly mocking MPs on the Committee | "Richard, you'll get your moment, relax," Sir Philip now openly mocking MPs on the Committee |
| 12.37pm BST | 12.37pm BST |
| 12:37 | 12:37 |
| 12.36pm BST | 12.36pm BST |
| 12:36 | 12:36 |
| Q: Would you have done the BHS deal if Chappell hasn’t passed Goldman Sachs’ smell test? | Q: Would you have done the BHS deal if Chappell hasn’t passed Goldman Sachs’ smell test? |
| No, Green insists. A million percent no. | No, Green insists. A million percent no. |
| But Richard Fuller MP suggests that Green must have had concerns -- otherwise why vet Chappell at all? | But Richard Fuller MP suggests that Green must have had concerns -- otherwise why vet Chappell at all? |
| Begs the question, if vetting of Chappell was so important, why didnt Green pay for it? Goldman Sachs did it for free | Begs the question, if vetting of Chappell was so important, why didnt Green pay for it? Goldman Sachs did it for free |
| Q: So will you deal with Goldman Sachs again? | Q: So will you deal with Goldman Sachs again? |
| Green won’t answer this question - saying he’s not blaming anyone (?!). | Green won’t answer this question - saying he’s not blaming anyone (?!). |
| He defends choosing to sell to Chappell, as he didn’t want to sell it to someone who would have put BHS into administration. | He defends choosing to sell to Chappell, as he didn’t want to sell it to someone who would have put BHS into administration. |
| If the business plan laid out in 2015 had been followed by the new owners, the company would have survived, he adds | If the business plan laid out in 2015 had been followed by the new owners, the company would have survived, he adds |
| [Reminder: BHS’s former finance officer also told the committee last week that BHS could have been saved, with better leadership from Chappell] | [Reminder: BHS’s former finance officer also told the committee last week that BHS could have been saved, with better leadership from Chappell] |
| 12.31pm BST | 12.31pm BST |
| 12:31 | 12:31 |
| Green denies that he blundered by not Googling Dominic Chappell and discovering he was a former bankrupt. | Green denies that he blundered by not Googling Dominic Chappell and discovering he was a former bankrupt. |
| I checked Google, and found that Walt Disney and HJ Heinz were made bankrupt, he says. Businessmen go bankrupt from time to time, | I checked Google, and found that Walt Disney and HJ Heinz were made bankrupt, he says. Businessmen go bankrupt from time to time, |
| Q: But your chief financial officer also knew he’d been involved with a convicted fraudster.... | Q: But your chief financial officer also knew he’d been involved with a convicted fraudster.... |
| Green says he didn’t know the full details of the links between Chappell and Sutton. | Green says he didn’t know the full details of the links between Chappell and Sutton. |
| Green says that he didn't know that Chappell was introduced to BHS deal by Paul Sutton, a convicted fraudster | Green says that he didn't know that Chappell was introduced to BHS deal by Paul Sutton, a convicted fraudster |
| 12.26pm BST | 12.26pm BST |
| 12:26 | 12:26 |
| Green: Olswang and Grant Thornton gave Chappell credibility | Green: Olswang and Grant Thornton gave Chappell credibility |
| Philip Green seems to have abandoned his pledge not to blame anyone else. | Philip Green seems to have abandoned his pledge not to blame anyone else. |
| He tells the committee that top brass at law firm Olswang, and accountants Grant Thornton, helped to give Dominic Chappell vital credibility. | He tells the committee that top brass at law firm Olswang, and accountants Grant Thornton, helped to give Dominic Chappell vital credibility. |
| I took a great deal of comfort that those two firms were representing Chappell, says Green, even though he suspect “they didn’t know the guy from a hole in the wall” before the deal began. | I took a great deal of comfort that those two firms were representing Chappell, says Green, even though he suspect “they didn’t know the guy from a hole in the wall” before the deal began. |
| Green now saying David Roberts of Olswang "knee deep" in deal and Peter Martin at Grant Thornton also involved | Green now saying David Roberts of Olswang "knee deep" in deal and Peter Martin at Grant Thornton also involved |
| Neither Grant Thornton or Olswang knew Chappell from "a hole in the wall", says Green. One of them bid for the work blind, not knowing | Neither Grant Thornton or Olswang knew Chappell from "a hole in the wall", says Green. One of them bid for the work blind, not knowing |
| Updated | Updated |
| at 12.27pm BST | at 12.27pm BST |
| 12.23pm BST | 12.23pm BST |
| 12:23 | 12:23 |
| The committee are pushing Green about exactly how Dominic Chappell came on the scene.... | The committee are pushing Green about exactly how Dominic Chappell came on the scene.... |
| "I try to avoid email and you guys turning up lots of bits of paper "says Green to MPs .. did he really just say that? | "I try to avoid email and you guys turning up lots of bits of paper "says Green to MPs .. did he really just say that? |
| Green also tries to dob Goldman Sachs in, citing a congratulatory email from top GS banker Anthony Gutman to Chappell. | Green also tries to dob Goldman Sachs in, citing a congratulatory email from top GS banker Anthony Gutman to Chappell. |
| Green just shafted Anthony Gutman at Goldman Sachs, reading out congratulatory email to Chappell. "That's hardly saying don't deal w him" | Green just shafted Anthony Gutman at Goldman Sachs, reading out congratulatory email to Chappell. "That's hardly saying don't deal w him" |
| 12.17pm BST | 12.17pm BST |
| 12:17 | 12:17 |
| Q: So, how did talks with Dominic Chappell begin? | Q: So, how did talks with Dominic Chappell begin? |
| Green says that he didn’t meet Chappell until he’d been “independently vetted” by Goldman Sachs. | Green says that he didn’t meet Chappell until he’d been “independently vetted” by Goldman Sachs. |
| [Background: last week, Chappell told the committee that he learned via Paul Sutton that BHS was for sale] | [Background: last week, Chappell told the committee that he learned via Paul Sutton that BHS was for sale] |
| Green reveals that Paul Budge, Arcadia’s finance director, asked for an affidavit from Chappell stating that there was no link to Sutton. | Green reveals that Paul Budge, Arcadia’s finance director, asked for an affidavit from Chappell stating that there was no link to Sutton. |
| Q: Why would you do that? | Q: Why would you do that? |
| There was a point when we realised there was a possible connection between the men, so we wanted a pledge that they weren’t linked, says Green. | There was a point when we realised there was a possible connection between the men, so we wanted a pledge that they weren’t linked, says Green. |
| The Sunday Times’s Oliver Shah has an important insight on this point: | The Sunday Times’s Oliver Shah has an important insight on this point: |
| Green says link between Sutton + Chappell was "mentioned". His PA seems to have known - emailed Sutton c/o Chappell pic.twitter.com/YMzLYbsze8 | Green says link between Sutton + Chappell was "mentioned". His PA seems to have known - emailed Sutton c/o Chappell pic.twitter.com/YMzLYbsze8 |
| That last tweet also shows Green was personally meeting Paul Sutton as late as May 2014 | That last tweet also shows Green was personally meeting Paul Sutton as late as May 2014 |
| Updated | Updated |
| at 12.18pm BST | at 12.18pm BST |
| 12.11pm BST | 12.11pm BST |
| 12:11 | 12:11 |
| Conservative MP Amanda Solloway now takes up the questioning, asking Green about how the sale of BHS unfolded. | Conservative MP Amanda Solloway now takes up the questioning, asking Green about how the sale of BHS unfolded. |
| He says Robin Saunders, a top City banker, had flagged up “en passant” that she knew of a well-funded individual who was interested in buying the group. | He says Robin Saunders, a top City banker, had flagged up “en passant” that she knew of a well-funded individual who was interested in buying the group. |
| He confirms that this was Paul Sutton, a convicted fraudster, who Green says he’d not met previously. | He confirms that this was Paul Sutton, a convicted fraudster, who Green says he’d not met previously. |
| Chappell didn’t come onto the scene until 3 February 2015, Green insists - sinking the idea that Chappell was a leading light in Sutton’s deal team. | Chappell didn’t come onto the scene until 3 February 2015, Green insists - sinking the idea that Chappell was a leading light in Sutton’s deal team. |
| And Green then says that a mysterious file on Sutton landed on his desk, which prompted Arcadia to “disengage” with him. | And Green then says that a mysterious file on Sutton landed on his desk, which prompted Arcadia to “disengage” with him. |
| Green says he decided not to deal further with Paul Sutton after a file arrived on him from an anonymous source. | Green says he decided not to deal further with Paul Sutton after a file arrived on him from an anonymous source. |
| Q: Robin Saunders told us that she warned you in June 2013 that Sutton was discredited....yet you still continued to deal with him. | Q: Robin Saunders told us that she warned you in June 2013 that Sutton was discredited....yet you still continued to deal with him. |
| Not true, Green insists - we broke off talk as soon as the file arrived [he’s vague about when it turned up, though] | Not true, Green insists - we broke off talk as soon as the file arrived [he’s vague about when it turned up, though] |
| Q: Did you lambast your team for not discovering problems with Sutton? | Q: Did you lambast your team for not discovering problems with Sutton? |
| Green pauses, looking suspicious, and then asks if the committee have a note saying that happened (!). | Green pauses, looking suspicious, and then asks if the committee have a note saying that happened (!). |
| It seems they do not. | It seems they do not. |
| Robin Saunders said Paul Sutton was discredited in June 2013. "The file didn't read very well and that was the end of it," said Green | Robin Saunders said Paul Sutton was discredited in June 2013. "The file didn't read very well and that was the end of it," said Green |
| Updated | Updated |
| at 12.17pm BST | at 12.17pm BST |
| 12.04pm BST | 12.04pm BST |
| 12:04 | 12:04 |
| Oooof, new evidence that Green told chairman of pension trustees that he "jeopardised" sale to Chappell by talking pension contributions | Oooof, new evidence that Green told chairman of pension trustees that he "jeopardised" sale to Chappell by talking pension contributions |