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Former BHS owner Dominic Chappell to be quizzed by MPs – live updates Former BHS owner Dominic Chappell had 'fingers in the till' – live updates
(35 minutes later)
9.19am BST
09:19
Darren Topp says he first met Dominic Chappell in February 2015, when the company was looking to develop its turnaround plan.
He explains that he met regularly with Sir Phillip Green, and flagged up his concerns about Chappell.
Darren Topp says he told Sir Philip Green that BHS had "credibility" problems with Dominic Chappell as owner
9.15am BST
09:15
Owner of BHS, Dominic Chappell, had "his fingers in the till" says the CEO he appointed. Chappell accused of corruption and incompetence.
9.14am BST
09:14
Topp is explaining how Chappell took funds out of BHS, rather than putting cash in as promised.
That includes a £7m contribution from sales of BHS property, plus a £1.8m payments from the sale in 2015.
Darren Topp just revealed some new shockers on Dominic Chappell - took £1.8m payment from sale of BHS and £7m cut from sale of BHS offices
9.12am BST
09:12
BHS CEO: Chappell had his fingers in the till
Darren Topp also explains that it was hard to turn BHS around given the large rent costs. So breaking away from Sir Phillip Green’s Arcadia group could make sense.
Q: So how did conditions change after March 2015?
Chappell explained that he was a turnaround expert, and had just pulled off a deal at an oil company in Spain.
Q: And was that true?
Topp explains that Chappell had promised to bring in turnaround experts, and £10m of his own money.
But promises didn’t come to fruition.
And then Topp sums up how things unravelled:
It became clear towards the end that rather than putting money in....he’d got his fingers in the till.
"It beceame clear that rather than putting money in he had got his fingers in the till" Darren Topp of BHS on former owner Dominic Chappell
Topp on Dominjc Chappell's claims unravelling :"Rather than putting money in he got his fingers in the till"
9.12am BST
09:12
9.07am BST
09:07
The session begins, with MPs taking evidence from Darren Topp, chief executive of BHS, former CEO Richard Price, and Michael Hitchcock, former financial adviser to BHS.
Topp begins by explaining that BHS lost money during his seven years at the company.
We didn’t respond quick enough, or fast enough to the changing market place, Topp explains. When we were competing with the likes of C&A (the Dutch chain), we did well, but conditions got harder as retail changed.
9.03am BST
09:03
The hearing is underway now. You can watch it live here.
8.56am BST
08:56
DId Dominic Chappell believed he was buying BHS for just £1 without taking on the pension deficit?
That seems extraordinary. But that what investment bank RiverRock told MPs yesterday....
Joseph Dryer of River Rock, which advised Chappell prior to his takeover of BHS, said Chappell had given the impression that he had been led to the BHS deal as he knew the Greens and had attended parties on their yacht.
Chappell had told his advisers that he had agreed a deal with Green that included the settlement of the pension deficit by the billionaire. When it emerged that no such deal had been agreed and the pension was still to be resolved River Rock resigned. Dryer suggested there had been a break down in relations.
As Dryer put it:
“At that point we had been working [with Chappell] over three weeks. Normally when you work with someone you build confidence levels with them. But that wasn’t exactly the case.”
BHS buyer’s bank dropped out over pension issue - https://t.co/cDQ0dDRTVv https://t.co/W2tlHGw2EN via @FT
8.49am BST
08:49
MPs need to dig into some property transactions today.
Chappell borrowed £35m from the Dellal family, a dynasty of property developers, before the takeover of BHS was conducted. Once the deal was done, the Dellals turned a nice profit on a property deal.
My colleague Graham Ruddick explains:
Allied Commercial Exporters (Ace), which is controlled by father and son Guy and Alexander Dellal, provided £35m to Chappell, allowing him to demonstrate to Arcadia he was a credible businessman.
Ace then bought a BHS office building next to its headquarters, called North West House, and sold it for a profit just weeks later. Ace also lent to BHS at such a fierce interest rate that it was known by the retailer’s management as the “Wonga” loan. These transactions made millions of pounds for Ace.
MPs must try to establish whether the property deals and loans were connected to Ace putting up the £35m.
Secretive dynasty helped Chappell buy BHS - then bought HQ and flipped it for a profit: https://t.co/BZdYh30hJe pic.twitter.com/u1pnl3Drn5
8.42am BST8.42am BST
08:4208:42
The Labour party want Dominic Chappell to apologise for his role in BHS’s collapse.The Labour party want Dominic Chappell to apologise for his role in BHS’s collapse.
Angela Eagle MP, shadow secretary of State for Business, Innovation and Skills, says the 11,000 workers facing likely job losses deserve answers.Angela Eagle MP, shadow secretary of State for Business, Innovation and Skills, says the 11,000 workers facing likely job losses deserve answers.
“The former management of BHS have apologised to staff, blaming Chappell - a former racing driver with virtually no experience of retail - for failing to deliver on his promises. He owes staff an apology too.“The former management of BHS have apologised to staff, blaming Chappell - a former racing driver with virtually no experience of retail - for failing to deliver on his promises. He owes staff an apology too.
“But he might owe more than that. Chappell’s company took millions of pounds out of the business as it veered into administration, leaving a huge pension deficit. He has serious questions to answer.”“But he might owe more than that. Chappell’s company took millions of pounds out of the business as it veered into administration, leaving a huge pension deficit. He has serious questions to answer.”
8.37am BST8.37am BST
08:3708:37
BHS managers blame Chappell for collapseBHS managers blame Chappell for collapse
Nine senior managers at BHS have piled fresh pressure on Dominic Chappell before today’s hearing, by firmly blaming him for the company’s demise.Nine senior managers at BHS have piled fresh pressure on Dominic Chappell before today’s hearing, by firmly blaming him for the company’s demise.
In a letter to BHS staff, they say that Chappell simply failed to deliver the financial support he promised.In a letter to BHS staff, they say that Chappell simply failed to deliver the financial support he promised.
They write:They write:
“We, the management team of British Home Stores, would like to apologise to you and all our colleagues for the very sad situation we find the business in.“We, the management team of British Home Stores, would like to apologise to you and all our colleagues for the very sad situation we find the business in.
“The inability of RAL [Retail Acquisitions] to raise sufficient funds and dispose of key property assets, hindered the management team in delivering the turnaround plan.“The inability of RAL [Retail Acquisitions] to raise sufficient funds and dispose of key property assets, hindered the management team in delivering the turnaround plan.
“Any sums of financing raised or property disposals appeared to fall short of expectations. Under challenge, Dominic Chappell continuously assured us he would deliver on raising funds, this was not the case.”“Any sums of financing raised or property disposals appeared to fall short of expectations. Under challenge, Dominic Chappell continuously assured us he would deliver on raising funds, this was not the case.”
Something for the MPs to raise this morning....Something for the MPs to raise this morning....
Related: BHS managers blame Dominic Chappell for company's collapseRelated: BHS managers blame Dominic Chappell for company's collapse
7.58am BST7.58am BST
07:5807:58
The agenda: MPs investigate BHS collapseThe agenda: MPs investigate BHS collapse
Good morning.Good morning.
After yesterday’s unforgettable hearing with Mike Ashley, another tarnished businessman is being quizzed at parliament this morning.After yesterday’s unforgettable hearing with Mike Ashley, another tarnished businessman is being quizzed at parliament this morning.
Dominic Chappell, former owner of BHS, is appearing before MPs, to explain his role in the retailers’ collapse which is costing 11,000 jobs.Dominic Chappell, former owner of BHS, is appearing before MPs, to explain his role in the retailers’ collapse which is costing 11,000 jobs.
And he has a lot of explaining to do. How and why did Chappell pick up the chain for £1, how much money was taken out by his Retail Acquisitions during his 13 months in charge, and why he wasn’t able to prevent its collapse last month?And he has a lot of explaining to do. How and why did Chappell pick up the chain for £1, how much money was taken out by his Retail Acquisitions during his 13 months in charge, and why he wasn’t able to prevent its collapse last month?
And why did he take on a retailer with a pension deficit that has now ballooned to £571m?And why did he take on a retailer with a pension deficit that has now ballooned to £571m?
The former racing driver has a rather chequered business record – including a couple of bankruptcies – and with no obvious expertise to run such a large company. And he’s never appeared before a select committee before, so this session could be seriously interesting.The former racing driver has a rather chequered business record – including a couple of bankruptcies – and with no obvious expertise to run such a large company. And he’s never appeared before a select committee before, so this session could be seriously interesting.
Yesterday, the BIS committee got Mike Ashley to agree that conditions at his firm were unacceptable. Today, they (in partnership with the Work and Pensions committee) need to dig into the complicated financial transactions around this deal, and try to find out how much Chappell benefitted personally.Yesterday, the BIS committee got Mike Ashley to agree that conditions at his firm were unacceptable. Today, they (in partnership with the Work and Pensions committee) need to dig into the complicated financial transactions around this deal, and try to find out how much Chappell benefitted personally.
Back in April, the Guardian reported that Retail Acquisitions took £25m out of BHS during their ownership. Chappell, though, insists that he also put £10m into the company, plus a £5m loan secured against BHS’s assets. Where did that money come from? And where did it go?....Back in April, the Guardian reported that Retail Acquisitions took £25m out of BHS during their ownership. Chappell, though, insists that he also put £10m into the company, plus a £5m loan secured against BHS’s assets. Where did that money come from? And where did it go?....
The committee will also hear from former top executives at BHS, who will also give crucial insights into Chappell.The committee will also hear from former top executives at BHS, who will also give crucial insights into Chappell.
The session begins at 9am. Here’s the batting order.The session begins at 9am. Here’s the batting order.
Sports Direct was in the dock yesterday and it's BHS' turn today. Has the image of the retail industry been irreparably tarnished?Sports Direct was in the dock yesterday and it's BHS' turn today. Has the image of the retail industry been irreparably tarnished?
Select Committee into #BHS begins at 9amLots questions to answer https://t.co/owI8Oc3LONSelect Committee into #BHS begins at 9amLots questions to answer https://t.co/owI8Oc3LON
Also coming up today....Also coming up today....
Financial markets could be edgy, after new data showed Chinese exports fell by over 4% last month.Financial markets could be edgy, after new data showed Chinese exports fell by over 4% last month.
TROUBLE! #China May exports fall 4.1% as global demand remained stubbornly weak. https://t.co/cWYur9plgY pic.twitter.com/5YF23jcJbtTROUBLE! #China May exports fall 4.1% as global demand remained stubbornly weak. https://t.co/cWYur9plgY pic.twitter.com/5YF23jcJbt
Supermarket chain Sainsbury is reporting results, showing total sales falling 1% in the last three months. Not great, but rather better than feared.Supermarket chain Sainsbury is reporting results, showing total sales falling 1% in the last three months. Not great, but rather better than feared.
Sainsbury's like-for-like sales down 0.8% excl fuel in last three months, down 1% incl fuelSainsbury's like-for-like sales down 0.8% excl fuel in last three months, down 1% incl fuel
Advertising giant WPP is holding its AGM, where shareholders could revolt against the £70m pay deal granted to CEO Sir Martin Sorrell.Advertising giant WPP is holding its AGM, where shareholders could revolt against the £70m pay deal granted to CEO Sir Martin Sorrell.
We’ll be tracking all the main events through the day...We’ll be tracking all the main events through the day...
UpdatedUpdated
at 8.33am BSTat 8.33am BST