Sir Philip Green To Be Quizzed On BHS Collaspe

MPs investigating whether BHS's collapse will mean higher charges for thousands of UK pensions funds are to call former owner Sir Philip Green for questioning.

The 88-year-old high street retailer has gone into administration with debts of more than £1.3bn, including a pension fund deficit of £571m - leaving 11,000 jobs at risk and threatening the closure of its 164 stores.

It (Other OTC: ITGL - news) has prompted MPs on the Commons Work and Pensions Committee to look into to what extent the cost of absorbing the £571m deficit will mean higher levies to pay towards the fund.

Frank Field MP, chair of the committee, told Sky (LSE: BSY.L - news) 's Ian King Live it was "obvious" Sir Philip would be invited to give evidence as part of the inquiry, which could take the form of a joint investigation with the Business Select Committee.

But he said that Sir Philip had already sworn at the committee so he expected the evidence session with the tycoon could be quite colourful.

Mr Field said: "He has called us a load of f****** a*******s, so clearly if he does come it will be a committee session that takes it slightly beyond the justice and reconciliation committee meetings elsewhere in the world.

"But it would be very interesting if he wanted to come and feels comfortable enough to answer the case that does now rest against him."

Labour MP John Mann has called for Sir Philip - whose Arcadia empire includes the likes of Topshop, Burton, and Dorothy Perkins - to pay back £400m in dividends or lose his knighthood.

BHS is continuing to trade, with no plans for immediate redundancies, amid reports that about 30 companies have expressed an interest in all or part of the business.

It enjoyed the best day of trading this year on Monday, with sales 80% up on the same day last year.

But tough questions are being asked about the background to the biggest retail failure since 2008, when Woolworths went under with the loss of almost 30,000 jobs.

Sir Philip was accused in the Commons of taking hundreds of millions of pounds from the high street chain and branded the "unacceptable face of capitalism" by Conservative MP Richard Fuller.

BHS was sold last year by Sir Philip's Arcadia group for £1 to little-known consortium Retail Acquisitions (RA).

It went under on Monday after last-ditch talks to find a new buyer for the firm over the weekend failed, administrator Duff & Phelps said.

RA's owner Dominic Chappell said no one was to blame, saying it was caused by a "combination of bad trading and not being able to raise enough money from the property portfolio".

However, speaking to the Financial Times he blamed Sir Philip for "blocking" a £60m loan from a finance group he claimed would have allowed the company to continue trading through this week.

Business minister Anna Soubry said the Pensions Regulator was investigating a "number of concerns and indeed allegations (Other OTC: UBGXF - news) ".