Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Sir Philip Green to blame for BHS demise, MPs conclude in damning report

  • Leadership failures and personal greed led to collapse of BHS, the MPs found
  • Green is accused of “bulldozing” the sale through without proper oversight
  • Retail Acquisitions boss Dominic Chappell also found to be at fault
  • There is concern some of these failures are not unique to BHS

Arcadia boss Sir Philip Green is ultimately to blame for the collapse of BHS, a “sorry and tragic saga” that will cost 11,000 people their jobs, MPs have said in a damning report on the downfall of the high street chain.

philip green

philip green

Sir Philip Green at the hearing in June

“One person, and one person alone, is ultimately responsible for the BHS disaster,” said Frank Field, chair of the work and pensions select committee, which carried out an inquiry into the retailer’s collapse.

“While Sir Philip Green signposted blame for 11,000 job losses and a gigantic pension fund hole to every known player, the buck stops with him. His reputation as the king of retail lies in the ruins of BHS.”

Field continued: “His family took out of BHS and Arcadia a fortune beyond the dreams of avarice, and he’s still to make good his boast of ‘fixing’ the pension fund.

“What kind of man is it who can count his fortune in billions but does not know what decent behaviour is?”

Green sold BHS to Retail Acquisitions, led by Dominic Chappell, for £1 in March 2015 - just over a year before it fell into administration.

In written evidence published in mid-July, Green argued that “on any fair review of the BHS balance sheet on sale and of the support we provided to the BHS business throughout it is clear we invested substantially in the business, we lent substantial sums to the business and we gave Retail Acquisitions every chance with a solid platform to take the business forward.”

But Iain Wright, chair of the business, innovation and skills committee, which ran a concurrent investigation into the chain’s collapse, said the sale to a “consortium led by a twice-bankrupt chancer with no retail experience” should never have gone ahead and blamed Green for being determined to push the deal through.

“There was a complete failure of corporate governance, with Sir Philip bulldozing the sale through without proper oversight or challenge from his weak and impotent board,” he said.

Wright also blamed Chappell, outlining that he “took no risk and put no money into the venture and yet gained huge rewards as BHS crumbled around him”.

“His failure is bad enough, but that he effectively had his hands in the till is an insult to the employees and pensioners of BHS that he let down so badly,” he added.

The 66-page report states that leadership failures and personal greed caused the downfall of the 88-year old chain, calling it “the unacceptable face of capitalism”.

The two committees said they fear some of the failures are not unique to BHS and there is need for broader consideration of the framework in which companies operate.

The work and pensions select committee said it will continue to examine the future of occupational pension schemes and “there may be a case for stronger and more proactive regulation”.

“Our inquiry will not be the end of scrutiny of the demise of BHS,” the report said. “We support investigations by the Financial Reporting Council, the Pensions Regulator, the Insolvency Service and the Serious Fraud Office.”

 

 

 

 

 

Related articles

Readers' comments (2)

  • Eric Musgrave

    The press reports do not due justice to the astonishing MPs' document. Drapers readers can find the full copy at these links
    PDF:
    http://bit.ly/2a4O2o0

    HTML:
    http://bit.ly/2a7NY3L

    News story:
    http://bit.ly/2a4R0sB

    The reputation of a great industry is being tarnished by this appalling saga.

    Unsuitable or offensive? Report this comment

  • its about time the truth was told about this odious greedy man and his avaricious family. Bloody disgraceful the way BHS workers have been treated

    Unsuitable or offensive? Report this comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.