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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 8 | Version 9 |
|---|---|
| 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) | |
| 1.44pm BST | |
| 13:44 | |
| OK, the committee are taking another quick break for a vote, but they will be back shortly. | |
| Green would happily have finished the session right then. | |
| 1.44pm BST | |
| 13:44 | |
| Green is arguing that he didn’t realise that Chappell was unreliable... | |
| Green says Chappell was supposed to put £10m of equity into BHS and "he didn't put any in" | |
| Green: "I did not know the sort of costs this guy was running up with advisers etc. I did not know until 4 was ago his £5m equity was a loan | |
| 1.37pm BST | |
| 13:37 | |
| Green says one of the “lovely journalists in the room” contributed to BHS’s demise, by undermining Chappell’s credibility each weekend. | |
| Those articles made it impossible to get credit insurance for BHS, he claims. | |
| I’m pretty sure he means Oliver Shah of the Sunday Times, who has swiftly responded: | |
| Green blames a "lovely journalist" for stopping Chappell get credit insurance. Perhaps he should take responsibility for selling to Chappell | |
| Suspect Green thought he could suppress Chappell/Sutton stories by bullying the press, as he tries to do numerous times wth Sunday Times | |
| Updated | |
| at 1.38pm BST | |
| 1.34pm BST | |
| 13:34 | |
| Green: Chappell "breached covenants" over BHS deal | |
| Onto another curious property deal, the sale of North West House (a BHS asset sold in 2015). | |
| Green says that it was sold to £32m, but only £25m showed up in the BHS accounts. Arcadia were told that remaining £7m had been transferred to the Bank of China, to help set up a £100m loan. | |
| He says that the £7m then arrived at Chappell’s lawyers, Olswang. But £1.2m was then paid to Olswang, £1.2m to Grant Thornton, £1.8m to Chappell himself.... | |
| This, Green declares. means that Chappell breached a covenant which Arcadia had made him sign, to not take money out of the business (as our Sarah Butler reported earlier this month) | |
| Green: angry about MPs not focusing on "blatent breach" of protective covenants by Chapell transfer of £7m proceeds from BHS property sale | |
| Philip Green alleges that Chappell took £7m from sale of BHS offices after claiming he had put it into Bank of China bank account | |
| 1.25pm BST | |
| 13:25 | |
| MP: Does Green have a corporate governance problem? | |
| Philip Green is getting ill-tempered again, as the committee ask how he compensated Chappell for the £8.5m profit that he didn’t get on the Marylebone House deal. | |
| He keep trying to sweep away questions he doesn’t like the sound of. | |
| And Iain Wright MP has spotted a pattern - suggesting that Green’s Arcadia Group has a serious corporate governance problem. | |
| That’s your opinion, Green says. | |
| If you behaves like this in a parliamentary committee, it must be hard for directors to raise concerns at an Arcadia board meeting, suggests Richard Fuller MP. | |
| I’m choosing to ignore that, says Green. | |
| Ian Wright says to Green "We're asking the questions" Then Green says he doesn't like way MP asking question.. getting v bad tempered | |
| You've complained about way questions put to you "Is that way you deal with your directors?' says MP. Green: I'm choosing to ignore that | |
| 1.19pm BST | 1.19pm BST |
| 13:19 | 13:19 |
| Green confirms that he had planned to sell Marylebone House, BHS’s HQ, to Chappell for £35m. | 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]. | [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. | 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? | 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. | 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.... | 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. | 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 | "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 | 1.09pm BST |
| 13:09 | 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. | 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 | 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? | 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. | 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? | 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. | That’s your observation, Green replies. |
| But again, he’s spreading the blame to other people...while claiming he’s not blaming anyone..... | 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 | MP: term sheet masquerading a £40mn loan as £120mn |
| 1.00pm BST | 1.00pm BST |
| 13:00 | 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. | 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 .... | You seem a dominant character, but also extraordinarily thin-skinned when asked quite courteous questions, Sir Philip .... |
| This seems to prick the Arcadia boss: | 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 | 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. | Wright’s point is that some Arcadia lieutenants might have been scared to raise a red flag to the Chappell deal. |
| 12.58pm BST | 12.58pm BST |
| 12:58 | 12:58 |
| Green adds that “unfortunately, we found the wrong guy” when they sold BHS to Dominic Chappell. What happened subsequently is “beyond horrible”. | 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 | 12.54pm BST |
| 12:54 | 12:54 |
| Green: I wouldn't do Chappell deal again | Green: I wouldn't do Chappell deal again |
| Iain Wright MP tries to pin Green down. | Iain Wright MP tries to pin Green down. |
| Q: Was good corporate governance followed in the sale of BHS? | Q: Was good corporate governance followed in the sale of BHS? |
| We’re going this again, Green asks, incredulously. | 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. | 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)? | 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... | Yes, Green insists. Grabiner is highly capable, and highly respected... |
| “was”, chips in one MP. Grabiner’s reputation has changed, Sir Philip.... | “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. | 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. | Would I do that deal again, no. Am I sorry we did that deal, yes. |
| 12.51pm BST | 12.51pm BST |
| 12:51 | 12:51 |
| Richard Graham MP calls up Green about his claim that Chappell lives in Fantasy Land... | Richard Graham MP calls up Green about his claim that Chappell lives in Fantasy Land... |
| ..I never said that, claims Green, astonishingly. | ..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) | 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. | 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, 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. | Sir Phil kicking off.Richard Graham suggests he sold BHS to get rid of pension liability."withdraw that"pretty obvious question to me. |
| Updated | Updated |
| at 12.55pm BST | 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 |