Sir Philip Green Agrees To Face MPs Over BHS

Former BHS owner Sir Philip Green has agreed to appear before MPs investigating the collapse of the retailer.

Sir Philip, who sold the company for £1 last year, is accused by Labour of taking millions in dividend payments while the firm was heading towards a crash.

The 90-year-old chain fell into administration with a £571m pension deficit last week, putting 11,000 jobs at risk.

The parliamentary hearing, as part of a joint inquiry between the Work and Pensions Committee and the Business, Innovations and Skills Committee, is expected to take place in mid-June.

It (Other OTC: ITGL - news) comes as the Government ordered the Insolvency Service to fast-track an investigation into BHS' collapse.

Business Secretary Sajid Javid said: “I have asked the Insolvency Service to bring forward its investigation rather than wait three months for the administrators to report before launching their inquiry.

"This investigation will look at the conduct of the directors at the time of insolvency and any individuals who were previously directors. Any issues of misconduct will be taken very seriously.”

In the Commons, he told MPs: "There's two select committees looking into it already and we all understand that there's been considerable concern expressed in Parliament. I share some of those concerns."

Shadow business secretary Angela Eagle has been critical of how Sir Philip led BHS.

She (Munich: SOQ.MU - news) said: "During Sir Philip Green's stewardship of BHS the pension fund went from a surplus to a black hole of £571m. What options do the Government and the Pensions Regulator now have to ensure Sir Philip Green pays his fair share of this huge liability?

"The Pension Protection Fund was designed as a lifeboat for staff pensions, not a funding stream for the owners' luxury yachts."

Mr Javid said a pension deficit did not "necessarily mean" there had been wrongdoing.