MPs say Green is to blame for BHS
Hands-up if you think you know what went wrong with BHS? It was rubbish and never had anything you wanted on their shelves?
Well, that might be one argument, but MPs are looking specifically at the collapse, and they've said that Sir Philip Green is to blame.
MPs said that Green and others "got rich" from BHS in a pretty hard-hitting report, saying that the business mogul extracted huge sums of money from the company, and left it on "life support".
Of course, there's a huge pensions deficit for people who worked for the company, which Green has said he'll sort out.
When Green appeared at the Business and the Work and Pensions select committee meeting, he pointed out that he'd invested £800 million in BHS, in a bid to get the business moving in the right direction.
However, MPs are not convinced by the whole thing.
John Ralfe, a pensions adviser for the MPs' report, said that Green needs to find a lot of money: "The first, lower magic number, is £275 million. That's the loss that the Pension Protection Fund will take."
However, the total deficit for the BHS pension is £571 million, which even Ralfe noted; "even for Sir Philip, as a billionaire, that's a lot of money".
Of course, BHS is in the process of closing down, in what the report referred to as the "shambolic" ownership of Dominic Chappell, who bought the chain from Green for £1, with MPs adding that he was "manifestly unsuitable" as a buyer.
They added further in their report, that a "large proportion of those who have got rich or richer off the back of BHS are to blame" for its failure.
"Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable," said the report.
"The tragedy is that those who have lost out are the ordinary employees and pensioners," the report continued; "This is the unacceptable face of capitalism."
"The reputation of business, the engine of prosperity, has been damaged, to the dismay of responsible investors, owners and business leaders."
TOPICS: High Street News