BHS administrators submit investigatory report on former BHS directors to Insolvency Service
Pressure is mounting on Sir Philip Green ahead of a parliamentary debate on BHS' collapse as City PM has learned the BHS administrators have submitted an investigatory report on the retailer's former directors to the Insolvency Service.
The report from Duff & Phelps on the conduct of former directors will remain confidential unless the Insolvency Service publishes its investigation. Ministers have been pushing for this unprecedented step to be taken due to the high-profile nature of BHS' collapse.
Read more: Sir Philip Green faces grilling when MPs debate BHS' collapse next Thursday
Green's actions will come under public scrutiny tomorrow when MPs debate the collapse of BHS in the House of Commons. Lawmakers will vote on whether or not Green should keep his knighthood, although any vote in favour will not be binding. The ultimate decision is for the honours forfeiture committee.
Other actors in the BHS saga are also likely to come under fire.
Dominic Chappell, the serial bankrupt that bought BHS from Green for £1, told City PM: "I won’t be watching."
The pensions lifeboat currently responsible for supporting BHS pensioners has still not received any written proposals on how Green will contribute to the BHS pension deficit.
The Pension Protection Fund (PPF) is seeking a better outcome for the BHS pensioners, who will receive a 10 per cent cut to their pensions if Green does not make an offer.
Read more: Sir Philip Green hires top lawyer to scrutinise MPs' inquiry into BHS
Discussions, however, are ongoing, and the PPF and The Pensions Regulator (TPR) are yet to see a satisfactory proposal.
It is still not clear which part of the Green family's complex web of companies – which includes Arcadia and Taveta Investments – will be the vehicle for helping BHS pensioners, City PM understands. Given the size and complexity of Green's retail empire, a resolution with the PPF and TPR is not expected to come soon.
Meanwhile, the administration of BHS is nearing a close, with the liquidation of the company expected within weeks.
During BHS' liquidation, FRP Advisory will also investigate the retailer's former directors. FRP Advisory has been appointed liquidator of BHS due to the PPF's concerns that Duff & Phelps were not independent of Green.
Green's spokesman said in a statement: "There are serious and extensive efforts continuing with the Pensions Regulator to find a pensions solution involving a substantial voluntary contribution for the benefit of BHS pensioners.
"We remain hopeful that a solution can be reached in the very near future."