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| Version 11 | Version 12 |
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| Former BHS owner Dominic Chappell denies threatening to kill CEO – as it happened | |
| (about 1 hour later) | |
| 3.55pm BST | |
| 15:55 | |
| Closing Summary: A tale of two Chappells | |
| Now that the dust has settled from a genuinely gripping session, what have we learned? | |
| MPs were presented with two different views of Dominic Chappell, but neither inspired confidence that he should have ever owned BHS. | |
| The man himself admitted not paying enough attention to BHS’s pension problems, a mistake that had terrible consequences for the company’s current and former workers. | |
| He had no retail experience, and had been planning to use his skills in the property game to generate profits. That gamble didn’t pay off, and BHS’s 11,000 staff are paying the price. | |
| And as MPs picked away at the property sales at the heart of the BHS deal, a curious picture slowly emerged about how Chappell’s Retail Acquisitions (RAL) ever looked like a credible bidder. It all centres on an aborted plan to sell Marylebone House, generating a nice profit for RAL, and helping funding the deal. | |
| So Dellals were going to buy Marylebone Road from RAL for £45m, but building owned by Sir Philip Green.... | |
| ....so RAL agreed to buy Marylebone Road from Sir Philip Green for £35m, with that provided by Dellals... | |
| .....and then when RAL owned Marylebone Road, the Dellals would pay the remaining £10m to RAL | |
| Given that RAL claimed Green knew this, that basically means Dellals were buying Marylebone House from Green for £45m with RAL given £10m | |
| When that sale unravelled, BHS sold another site to the Dellals, and eventually got £10m from Green as compensation. | |
| Dellal-Green-RAL dealings hugely important, because without it Dominic Chappell put no money into BHS | |
| So, a buyer without retail experience and without the funding needed to turn BHS around. | |
| We also learned: | |
| Chappell tried to deflect blame on Green, hinting that he might sue, claiming that the Arcadia boss expected him to fail -- and even saying Green sabotaged a rescue bit from Mike Ashley at the last minute. | |
| That’s the same Mike Ashley who admitted yesterday that Sports Direct had become too big for him; we can only imagine how he’d have coped with BHS too.... | |
| The killer blow may have been the admission that he had to take a £150,000 personal loan, and has yet to repay half of it. Chappell blamed tax bills, citing profits he made at BHS. Having to deny that you’re heading for another bankruptcy must have stung Chappell. As must defending the £1.5m loan to a company that owned his father’s house. | |
| Astonishingly, that is the more flattering picture of Chappell which the former racing driver painted himself. | |
| BHS’s former management were scathing -- with one-time finance chief Michael Hitchcock memorably calling Chappell a Premier League class liar with his fingers in the till. | |
| Hitchcock also argued that BHS could have been saved with a more competent and financially robust owner; so why did Green sell to Chappell? | |
| And Darren Topp, former CEO, had the bombshell moment - claiming that Chappell threatened to kill him after the £1.5m transfer of funds to BHS Sweden was discovered. | |
| Chappell insisted this was nonsense. | |
| But this transfer is curious, especially as Chappell admitted that BHS Sweden was controlled by one of his directors - not BHS itself. | |
| Topp claimed it was simply “theft” -- although the money has been returned. | |
| So, there’s a lot for MPs to digest - and a lot for Philip Green to talk about when he testifies soon. | |
| And that’s all for today. Thanks for reading and commenting. GW | |
| Updated | |
| at 4.08pm BST | |
| 2.59pm BST | 2.59pm BST |
| 14:59 | 14:59 |
| ITV’s Joel Hill has tweeted the letter which Sir Philip Green sent in April, calling in his £35m loan, and triggering BHS’s administration. | ITV’s Joel Hill has tweeted the letter which Sir Philip Green sent in April, calling in his £35m loan, and triggering BHS’s administration. |
| This is what Chappell was referring to earlier, when he said Green had thwarted Sports Direct’s attempts to save BHS: | This is what Chappell was referring to earlier, when he said Green had thwarted Sports Direct’s attempts to save BHS: |
| Philip Green calls in his £35m. Chappell says this letter an attempt to scupper deal to sell BHS to Sports Direct. pic.twitter.com/MZjmRUx8a2 | Philip Green calls in his £35m. Chappell says this letter an attempt to scupper deal to sell BHS to Sports Direct. pic.twitter.com/MZjmRUx8a2 |
| Letter signed by Arcadia Finance Director and dated April 22nd - three days before BHS went into administration. pic.twitter.com/HNThbHDchf | Letter signed by Arcadia Finance Director and dated April 22nd - three days before BHS went into administration. pic.twitter.com/HNThbHDchf |
| Letter makes clear that BHS is insolvent. Chappell says deal with Sports Direct would have saved 11,000 jobs. pic.twitter.com/eCcwiVfwbJ | Letter makes clear that BHS is insolvent. Chappell says deal with Sports Direct would have saved 11,000 jobs. pic.twitter.com/eCcwiVfwbJ |
| 2.49pm BST | 2.49pm BST |
| 14:49 | 14:49 |
| BHS’s former CEO, Darren Topp, was surrounded by reporters and snappers as he left today’s hearing - after his dramatic claims about Dominic Chappell. | BHS’s former CEO, Darren Topp, was surrounded by reporters and snappers as he left today’s hearing - after his dramatic claims about Dominic Chappell. |
| 1.53pm BST | 1.53pm BST |
| 13:53 | 13:53 |
| Chappell: I didn't threaten to kill my CEO | Chappell: I didn't threaten to kill my CEO |
| Despite quizzing Chappell for two hours, the MPs failed to ask the former owner of BHS about the allegation that he threatened to kill CEO Darren Topp. | Despite quizzing Chappell for two hours, the MPs failed to ask the former owner of BHS about the allegation that he threatened to kill CEO Darren Topp. |
| But the British press pack are on the case.... | But the British press pack are on the case.... |
| Our own Sarah Butler, and the Telegraph’s Ashley Armstrong, collared Chappell in the media scrum. | Our own Sarah Butler, and the Telegraph’s Ashley Armstrong, collared Chappell in the media scrum. |
| And Chappell has denied that he made the threat after Topp discovered the £1.5m transfer of funds to BHS Sweden (as the MPs heard this morning) | And Chappell has denied that he made the threat after Topp discovered the £1.5m transfer of funds to BHS Sweden (as the MPs heard this morning) |
| Chappell says Darren Topp's claim that he threatened to kill him was "a nonsense" "of course I haven't got a gun" he says | Chappell says Darren Topp's claim that he threatened to kill him was "a nonsense" "of course I haven't got a gun" he says |
| Chappell on sidelines : "Absolute rubbish I did not threaten To kill him (BHS boss) or have a gun" | Chappell on sidelines : "Absolute rubbish I did not threaten To kill him (BHS boss) or have a gun" |
| Updated | Updated |
| at 2.28pm BST | at 2.28pm BST |
| 1.48pm BST | 1.48pm BST |
| 13:48 | 13:48 |
| Chappell apologises for his part in BHS's failure | Chappell apologises for his part in BHS's failure |
| And finally.... the MPs ask Dominic Chappell about what he most regrets, with hindsight. | And finally.... the MPs ask Dominic Chappell about what he most regrets, with hindsight. |
| Chappell pauses, and then points to the pension black hole. | Chappell pauses, and then points to the pension black hole. |
| We should have spend more time looking at the pension issue before the deal, and ensured that Philip Green was contractually committed to helping with trade insurance. | We should have spend more time looking at the pension issue before the deal, and ensured that Philip Green was contractually committed to helping with trade insurance. |
| Q: And would you like to apologise to anyone? | Q: And would you like to apologise to anyone? |
| I am very upset that there are 11,000 people directly, and many thousands more indirectly, who have lost their jobs, says Chappell. | I am very upset that there are 11,000 people directly, and many thousands more indirectly, who have lost their jobs, says Chappell. |
| It is a travesty that it happened. I am very upset that it happened, and it was avoidable. | It is a travesty that it happened. I am very upset that it happened, and it was avoidable. |
| Q: For the record, is that an apology? | Q: For the record, is that an apology? |
| It is an apology, Chappell confirms. | It is an apology, Chappell confirms. |
| Q: So, are you to blame for the collapse of BHS? | Q: So, are you to blame for the collapse of BHS? |
| Chappell says he is partly responsible: | Chappell says he is partly responsible: |
| I must stand forward as majority shareholder and say we were part of the downfall of BHS. | I must stand forward as majority shareholder and say we were part of the downfall of BHS. |
| And that’s the end of the hearing..... | And that’s the end of the hearing..... |
| 1.42pm BST | 1.42pm BST |
| 13:42 | 13:42 |
| Interesting.... Chappell reveals that BHS Sweden was solely owned by one Retail Acquisitions director, Lennard Henningson, when £1.5m was transferred from BHS. | Interesting.... Chappell reveals that BHS Sweden was solely owned by one Retail Acquisitions director, Lennard Henningson, when £1.5m was transferred from BHS. |
| Ie:, it wasn’t incorporated into BHS. But that was always supposed to happen, Chappell insists, but RAL hasn’t had time to do it. They were difficult times. | Ie:, it wasn’t incorporated into BHS. But that was always supposed to happen, Chappell insists, but RAL hasn’t had time to do it. They were difficult times. |
| Dominic Chappell admits that BHS Sweden was solely owned by Lennart Henningson, not BHS | Dominic Chappell admits that BHS Sweden was solely owned by Lennart Henningson, not BHS |
| 1.38pm BST | 1.38pm BST |
| 13:38 | 13:38 |
| MP: Chappell should have been on the bridge, not a yacht | MP: Chappell should have been on the bridge, not a yacht |
| Q: What sort of message does it send about capitalism that you were in the Bahamas on the day when BHS went into administration? | Q: What sort of message does it send about capitalism that you were in the Bahamas on the day when BHS went into administration? |
| This is a sideshow, fumes Chappell. He tells MPs that he can show them details of the meetings he had with potential investors who could have saved BHS. | This is a sideshow, fumes Chappell. He tells MPs that he can show them details of the meetings he had with potential investors who could have saved BHS. |
| The MPs aren’t impressed, saying “Captains should be on the bridge of the ship, not a yacht.” | The MPs aren’t impressed, saying “Captains should be on the bridge of the ship, not a yacht.” |
| Chappell says that the administrators, Duffy Phelps, made it clear that we were not allowed back in the building. | Chappell says that the administrators, Duffy Phelps, made it clear that we were not allowed back in the building. |
| Chappell admits he was in Bahamas when administrators called in to BHS: MP: "The captain should be on the bridge of the ship." | Chappell admits he was in Bahamas when administrators called in to BHS: MP: "The captain should be on the bridge of the ship." |
| 1.34pm BST | 1.34pm BST |
| 13:34 | 13:34 |
| Chappell defends £1.5m transfer | Chappell defends £1.5m transfer |
| Q: At last.... the committee ask about the £1.5m which Chappell tried to transfer out of BHS to Sweden (as CEO Darren Topp revealed). | Q: At last.... the committee ask about the £1.5m which Chappell tried to transfer out of BHS to Sweden (as CEO Darren Topp revealed). |
| Chappell claims he did this to protect funds, as he believes Topp was working to a different agenda. He says the money was needed to pay various fees, such as insurance, and to JP Morgan and KPMG. | Chappell claims he did this to protect funds, as he believes Topp was working to a different agenda. He says the money was needed to pay various fees, such as insurance, and to JP Morgan and KPMG. |
| Q: So why did you put it back? | Q: So why did you put it back? |
| Chappell says he was reassured by Topp, so brought the money back (minus £50,000 in fees which have now been repaid too) | Chappell says he was reassured by Topp, so brought the money back (minus £50,000 in fees which have now been repaid too) |
| Mr Topp is sitting in the gallery, shaking his head, points out Iain Wright MP. Perhaps we should hear from him again before this session ends..... | Mr Topp is sitting in the gallery, shaking his head, points out Iain Wright MP. Perhaps we should hear from him again before this session ends..... |
| 1.33pm BST | 1.33pm BST |
| 13:33 | 13:33 |
| The committee ask for details about various BHS property sales... | The committee ask for details about various BHS property sales... |
| Chappell says he "can't recall" if any of £1m diverted from two BHS property sales to RAL ended up in he personal bank account | Chappell says he "can't recall" if any of £1m diverted from two BHS property sales to RAL ended up in he personal bank account |
| 1.29pm BST | 1.29pm BST |
| 13:29 | 13:29 |
| The gloves are coming off.... Frank Field MP tells Dominic Chappell that his grandmother would call him a “Walter Mitty” character, but one who can get money for himself. | The gloves are coming off.... Frank Field MP tells Dominic Chappell that his grandmother would call him a “Walter Mitty” character, but one who can get money for himself. |
| That’s very personal, Chappell replies. | That’s very personal, Chappell replies. |
| Chappell cracks: says £1.5m loan "what difference does it make in the grand scheme of of things" "your being very personal" | Chappell cracks: says £1.5m loan "what difference does it make in the grand scheme of of things" "your being very personal" |
| 1.28pm BST | 1.28pm BST |
| 13:28 | 13:28 |
| Chappell: £1.5m loan is a sideshow | Chappell: £1.5m loan is a sideshow |
| The MPs now demand more details about the £1.5m loan that Retail Acquisitions gave to the company that owns Chappell’s father’s house. | The MPs now demand more details about the £1.5m loan that Retail Acquisitions gave to the company that owns Chappell’s father’s house. |
| Chappell says that the loan was agreed by RAL’s board – he voted in favour, although one independent director abstained. | Chappell says that the loan was agreed by RAL’s board – he voted in favour, although one independent director abstained. |
| It might have been better if YOU had abstained, the committee suggest, then the independent directors could vote on it. Where was the corporate governance? | It might have been better if YOU had abstained, the committee suggest, then the independent directors could vote on it. Where was the corporate governance? |
| MP: "There was no corporate governance at all in Retail Acquisitions at all it was just a joke." | MP: "There was no corporate governance at all in Retail Acquisitions at all it was just a joke." |
| Chappell doesn’t like this line of questioning - claiming that £1.5m is “a sideshow” compared to what BHS is all about. | Chappell doesn’t like this line of questioning - claiming that £1.5m is “a sideshow” compared to what BHS is all about. |
| This is not a sideshow, he’s told, as gasps echo around the room. This goes to the heart of what went wrong at BHS. | This is not a sideshow, he’s told, as gasps echo around the room. This goes to the heart of what went wrong at BHS. |
| Gasps in the room as Chappell says "what difference would £1.5m from BHS make in the grand scheme of things? It's a sideshow" | Gasps in the room as Chappell says "what difference would £1.5m from BHS make in the grand scheme of things? It's a sideshow" |
| 1.22pm BST | 1.22pm BST |
| 13:22 | 13:22 |
| Chappell: I'm not going bankrupt again | Chappell: I'm not going bankrupt again |
| Iain Wright MP asks Chappell about a personal loan of £150,000 he took out recently, at 1% per month, repayable after two weeks. | Iain Wright MP asks Chappell about a personal loan of £150,000 he took out recently, at 1% per month, repayable after two weeks. |
| Only £75,000 has been repaid, and the other half has now been formally demanded (by the Dellal family, who had been involved those complicated property deals) | Only £75,000 has been repaid, and the other half has now been formally demanded (by the Dellal family, who had been involved those complicated property deals) |
| Q: Mr Chappell, are you going bankrupt again? | Q: Mr Chappell, are you going bankrupt again? |
| No, says Chappell, giving a vey short laugh (and not looking amused at all). | No, says Chappell, giving a vey short laugh (and not looking amused at all). |
| He says that he had a tax bill to pay. | He says that he had a tax bill to pay. |
| Q: But you’ve told us that you’ve made money on BHS. | Q: But you’ve told us that you’ve made money on BHS. |
| Yes, but when you make a profit, you incur tax, Chappell explains. | Yes, but when you make a profit, you incur tax, Chappell explains. |
| Updated | Updated |
| at 1.23pm BST | at 1.23pm BST |
| 1.16pm BST | 1.16pm BST |
| 13:16 | 13:16 |
| Q: Did you lend £1.5m from BHS to a property company connected to your father? | Q: Did you lend £1.5m from BHS to a property company connected to your father? |
| The loan came from Retail Acquisitions, Chappell says, not BHS, from money generated by the business. It went to a company that owns his father’s house. | The loan came from Retail Acquisitions, Chappell says, not BHS, from money generated by the business. It went to a company that owns his father’s house. |
| Updated | Updated |
| at 1.21pm BST | at 1.21pm BST |
| 1.12pm BST | 1.12pm BST |
| 13:12 | 13:12 |
| Dominic Chappell is adamant that he’s not to blame for the deadlock over BHS’s pension black hole. | Dominic Chappell is adamant that he’s not to blame for the deadlock over BHS’s pension black hole. |
| It’s argues that its Philip Green’s fault, for failing to co-operate with the pension regulators. | It’s argues that its Philip Green’s fault, for failing to co-operate with the pension regulators. |
| Frank Field: "Philip Green was like Banquo's ghost in all of this - he was always there. He wouldn't leave you along" | Frank Field: "Philip Green was like Banquo's ghost in all of this - he was always there. He wouldn't leave you along" |
| 1.06pm BST | 1.06pm BST |
| 13:06 | 13:06 |
| In another dizzying trip down the rabbit hole, Chappell says he wasn’t allowed to speak to the Pensions Regulator about BHS before he had actually bought the company. | In another dizzying trip down the rabbit hole, Chappell says he wasn’t allowed to speak to the Pensions Regulator about BHS before he had actually bought the company. |
| Bizarre. Condition of BHS deal was that Sir Philip Green would not allow Dominic Chappell to see Pensions Regulator before deal | Bizarre. Condition of BHS deal was that Sir Philip Green would not allow Dominic Chappell to see Pensions Regulator before deal |
| 1.04pm BST | 1.04pm BST |
| 13:04 | 13:04 |
| Dominic Chappell continues to blame Sir Philip Green for BHS’s collapse. | Dominic Chappell continues to blame Sir Philip Green for BHS’s collapse. |
| He repeats his complaint that the Arcadia boss didn’t deliver on his promise to sort out BHS’s credit insurance (which drove up costs) | He repeats his complaint that the Arcadia boss didn’t deliver on his promise to sort out BHS’s credit insurance (which drove up costs) |
| BHS pension like "lighting the red touch paper" w Green, Chappell says. "He went from zero to incredibly angry the moment you mentioned it" | BHS pension like "lighting the red touch paper" w Green, Chappell says. "He went from zero to incredibly angry the moment you mentioned it" |
| Chappell says he did "everything in my powers", including attempting to sell to Mike Ashley before Green "railroaded" the rescue deal | Chappell says he did "everything in my powers", including attempting to sell to Mike Ashley before Green "railroaded" the rescue deal |
| MPs aren’t impressed... | MPs aren’t impressed... |
| Q: You bought this company, and had a cash crisis within three months of buying the business. | Q: You bought this company, and had a cash crisis within three months of buying the business. |
| Chappell claims it was more like a short-term pinch point - and he sorted out a loan to cover it. | Chappell claims it was more like a short-term pinch point - and he sorted out a loan to cover it. |