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| BHS was 'crashed into a cliff' says senior Labour MP | BHS was 'crashed into a cliff' says senior Labour MP |
| (about 1 hour later) | |
| Failed retailer BHS, was "crashed into a cliff", the chairman of the Business Innovation and Skills Committee, Iain Wright has told the BBC. | Failed retailer BHS, was "crashed into a cliff", the chairman of the Business Innovation and Skills Committee, Iain Wright has told the BBC. |
| Mr Wright said leaders of Retail Acquisitions, which bought BHS in 2015 for £1, where "untried and untested". | Mr Wright said leaders of Retail Acquisitions, which bought BHS in 2015 for £1, where "untried and untested". |
| He also implied that the previous owner, Sir Philip Green, "stripped" the company of cash. | He also implied that the previous owner, Sir Philip Green, "stripped" the company of cash. |
| Sir Philip is due to answer questions before a joint hearing of two commons' committee at a date of his choice. | Sir Philip is due to answer questions before a joint hearing of two commons' committee at a date of his choice. |
| Mr Wright's Business Innovation and Skills Committee and the Work and Pensions Committee want to ask Sir Philip about the sale of BHS and how it was left with a deficit in its pension fund of £571m. | Mr Wright's Business Innovation and Skills Committee and the Work and Pensions Committee want to ask Sir Philip about the sale of BHS and how it was left with a deficit in its pension fund of £571m. |
| "Is it right that people can buy a company, strip it, in many respects, of cash in terms of dividends - without real regard to pensions or to employees - and then sell it for a pound to untried and untested people who then crash it into a cliff," said Mr Wright on BBC Radio 4's Today Programme. | "Is it right that people can buy a company, strip it, in many respects, of cash in terms of dividends - without real regard to pensions or to employees - and then sell it for a pound to untried and untested people who then crash it into a cliff," said Mr Wright on BBC Radio 4's Today Programme. |
| Sir Philip has offered to make an £80m voluntary contribution to the pension fund. | |
| Analysis: Edward Curwen, BBC Analysis & Research | |
| Much attention in the wake of BHS falling into administration has been on the pension deficit. So who is to blame? | |
| First the £571 million deficit is the most conservative estimate possible. It is known as the buy-out deficit and it is based on the cost insurance companies place on closing the gap between what is owed and the money a pension scheme has. | |
| The deficit that needed to be eliminated whilst BHS was still trading was calculated using a different method and it was closer to £350 million. | |
| In 2012, BHS agreed to put £10 million in every year over the following 23 years to get the scheme back into the black. | |
| The plans were agreed between the trustees of the pension scheme and the company and the Pensions Regulator supervises the process to make sure any agreement is credible. | |
| Critics say this wasn't enough cash and it would take far too long. | |
| Sir Philip Green: Battered reputation | |
| 'What we'll miss if BHS closes' | |
| BHS: What are the next steps? | |
| Pension scheme at heart of BHS woes | |
| Loan revelation | |
| When BHS was sold there were questions over the lack of retail experience of Dominic Chappell and his team at Retail Acquisitions which became the majority shareholder of BHS. | |
| Last week it emerged that Mr Chappell attempted to move £1.5m from BHS, to BHS Sweden, just days before BHS went into administration. | |
| BHS Sweden had no connection to BHS, but was owned by a friend and fellow board member of Mr Chappell. | |
| The money was transferred back after protests from BHS chief executive Darren Topp. | |
| Pensions cutback | |
| BHS filed for administration on 25 April, putting 11,000 jobs at risk. | |
| It will continue trading while the administrators seek a buyer for the business. | |
| The administration means members of the pension scheme who are yet to retire will be paid a less generous pension. | |
| One Labour MP John Mann, and member of the Treasury select committee, said Sir Philip must repay £400m of dividends that were paid out of BHS, or give up his knighthood. | |
| Mr Chappell has been asked to appear before the parliamentary committees, along with Tina Green, Sir Philip's wife. |