This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/business/2016/jun/26/mps-scrutinise-sir-philip-greens-bhs-link-banker-michael-sherwood

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
MPs to scrutinise Sir Philip Green's link with influential banker MPs to scrutinise Sir Philip Green's link with influential banker
(2 months later)
The relationship between one of Britain’s most influential bankers and Sir Philip Green will be thrown into the spotlight this week as MPs deepen their investigation into the collapse of BHS.The relationship between one of Britain’s most influential bankers and Sir Philip Green will be thrown into the spotlight this week as MPs deepen their investigation into the collapse of BHS.
Michael Sherwood, the vice-chairman of Goldman Sachs, will appear before a parliamentary committee on Wednesday to answer questions about his ties with Green.Michael Sherwood, the vice-chairman of Goldman Sachs, will appear before a parliamentary committee on Wednesday to answer questions about his ties with Green.
Sherwood is the co-head of Goldman’s European business and has advised Green for more than a decade. He worked on the tycoon’s failed attempt to buy Marks & Spencer in 2004. Sherwood will appear alongside Anthony Gutman, the co-head of investment banking for Goldman in Europe, and Michael Casey, another Goldman banker.Sherwood is the co-head of Goldman’s European business and has advised Green for more than a decade. He worked on the tycoon’s failed attempt to buy Marks & Spencer in 2004. Sherwood will appear alongside Anthony Gutman, the co-head of investment banking for Goldman in Europe, and Michael Casey, another Goldman banker.
Goldman has been thrown into the centre of the BHS scandal after Green claimed he “one million per cent” would not have sold the department store chain to Dominic Chappell if the prospective buyer had not passed an informal vetting by the bank. Chappell has been declared bankrupt three times and had no experience of running a retail business before buying BHS.Goldman has been thrown into the centre of the BHS scandal after Green claimed he “one million per cent” would not have sold the department store chain to Dominic Chappell if the prospective buyer had not passed an informal vetting by the bank. Chappell has been declared bankrupt three times and had no experience of running a retail business before buying BHS.
BHS collapsed into administration in April, putting 11,000 jobs at risk and leaving a £571m pension deficit. Green controlled BHS for 15 years until he sold it for £1 in March 2015 to Chappell’s consortium Retail Acquisitions.BHS collapsed into administration in April, putting 11,000 jobs at risk and leaving a £571m pension deficit. Green controlled BHS for 15 years until he sold it for £1 in March 2015 to Chappell’s consortium Retail Acquisitions.
There is growing anger about the collapse of BHS because Green and other investors collected more than £580m in dividends, rental payments and interest during the tycoon’s period in charge. Retail Acquisitions also collected at least £17m from the retailer despite owning it for just 13 months.There is growing anger about the collapse of BHS because Green and other investors collected more than £580m in dividends, rental payments and interest during the tycoon’s period in charge. Retail Acquisitions also collected at least £17m from the retailer despite owning it for just 13 months.
MPs are investigating how the BHS’s pension scheme ended up heavily in deficit and why Green sold the company to Chappell.MPs are investigating how the BHS’s pension scheme ended up heavily in deficit and why Green sold the company to Chappell.
The Goldman trio will be grilled on claims by Retail Acquisitions and its advisers that the bank acted as the “gatekeeper” for Green during the sale process.The Goldman trio will be grilled on claims by Retail Acquisitions and its advisers that the bank acted as the “gatekeeper” for Green during the sale process.
Related: Why was Dominic Chappell so relaxed about the hole in BHS’s pension fund?
Gutman will be appearing in front of the the joint hearing of the business, innovation and skills committee, and the work and pensions committee, for the second time. He initially told MPs last month that Goldman had offered only “informal assistance” to Green and had not been paid for its work. However, it subsequently emerged that Goldman’s work involved 79 emails, 13 calls, and three meetings, including a “congratulations” email from Gutman to Chappell when Retail Acquisitions completed its deal to buy BHS.Gutman will be appearing in front of the the joint hearing of the business, innovation and skills committee, and the work and pensions committee, for the second time. He initially told MPs last month that Goldman had offered only “informal assistance” to Green and had not been paid for its work. However, it subsequently emerged that Goldman’s work involved 79 emails, 13 calls, and three meetings, including a “congratulations” email from Gutman to Chappell when Retail Acquisitions completed its deal to buy BHS.
MPs will also hear from a string of other witnesses this week who are connected to Green or the BHS scandal.MPs will also hear from a string of other witnesses this week who are connected to Green or the BHS scandal.
This includes Neville Kahn of accountancy firm Deloitte, another key adviser to Green, and Brett Palos, the tycoon’s stepson. Palos is a non-executive director of Arcadia, Green’s retail business. He bought a BHS shop in Ealing, west London, for £6.9m just days before the Retail Acquisitions deal and sold it for a £3m profit just weeks later. Chappell told MPs he was shocked when he found out that Palos had been behind the property deal.This includes Neville Kahn of accountancy firm Deloitte, another key adviser to Green, and Brett Palos, the tycoon’s stepson. Palos is a non-executive director of Arcadia, Green’s retail business. He bought a BHS shop in Ealing, west London, for £6.9m just days before the Retail Acquisitions deal and sold it for a £3m profit just weeks later. Chappell told MPs he was shocked when he found out that Palos had been behind the property deal.
Other witnesses to appear will include Alex Dellal, who runs Allied Commercial Exporters (Ace). Dellal helped to finance Retail Acquisition’s takeover of BHS by providing £35m that the consortium used to demonstrate its credibility to Green. Ace then went on to make an estimated £16m profit from a series of property deals and loan agreements with BHS and Retail Acquisitions.Other witnesses to appear will include Alex Dellal, who runs Allied Commercial Exporters (Ace). Dellal helped to finance Retail Acquisition’s takeover of BHS by providing £35m that the consortium used to demonstrate its credibility to Green. Ace then went on to make an estimated £16m profit from a series of property deals and loan agreements with BHS and Retail Acquisitions.
Paul Sutton, who introduced Chappell to Green, will also answer questions from MPs. Sutton was in talks to buy BHS from Green until a whistleblower handed over a dossier to the billionaire that showed Sutton had been convicted of fraud in France. Chappell then stepped in to buy the retailer.Paul Sutton, who introduced Chappell to Green, will also answer questions from MPs. Sutton was in talks to buy BHS from Green until a whistleblower handed over a dossier to the billionaire that showed Sutton had been convicted of fraud in France. Chappell then stepped in to buy the retailer.
MPs have recalled Arcadia executives and the head of the Pensions Regulator for further questions about the collapse of BHS. The recalled Arcadia witnesses are Paul Budge, the finance director, and Chris Harris, the property director. Lesley Titcomb, the chief executive of the Pensions Regulator, will be asked to explain what steps were taken to restructure the BHS pension scheme before Green sold the company, and what action could be taken against the tycoon to fill the £571m deficit.MPs have recalled Arcadia executives and the head of the Pensions Regulator for further questions about the collapse of BHS. The recalled Arcadia witnesses are Paul Budge, the finance director, and Chris Harris, the property director. Lesley Titcomb, the chief executive of the Pensions Regulator, will be asked to explain what steps were taken to restructure the BHS pension scheme before Green sold the company, and what action could be taken against the tycoon to fill the £571m deficit.
Green told MPs he would “sort” the pension problems facing BHS, but a plan is yet to emerge.Green told MPs he would “sort” the pension problems facing BHS, but a plan is yet to emerge.
“Nothing is more sad than how this has ended,” Green said. “There is certainly no intent at all on my part for anything to be like this, and it didn’t need to be like this. I just want to apologise to all the BHS people who have been involved in this.”“Nothing is more sad than how this has ended,” Green said. “There is certainly no intent at all on my part for anything to be like this, and it didn’t need to be like this. I just want to apologise to all the BHS people who have been involved in this.”