Sir Philip Green To Be Quizzed On BHS Collapse

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 chain 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.

In a fresh twist to the BHS saga, its latest owner Dominic Chappell has now said he is working with US investors to put together a rescue package for the business - free of its pension liabilities.

The company's collapse 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 from other pension funds that contribute towards the Government-backed pensions lifeboat.

This is the fund that will have to bail out BHS's 20,000 retirement scheme members.

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."

:: BHS Hit By VAT Demand Days Before Collapse

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.

George Osborne said that powerful bodies, including the Insolvency Service, would "get to the bottom of exactly what went on and whether owners, directors or indeed previous owners behaved properly ..."

Sir Philip was this week 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 is continuing to trade, with no plans for immediate redundancies, amid reports that about 50 potential buyers have expressed an interest in all or part of the business.

It (Other OTC: ITGL - news) enjoyed the best day of trading this year on the day it went under on Monday, with sales 80% up on the same day last year.

Now Mr Chappell - whose little-known Retail Acquisitions vehicle bought the business from Sir Philip for £1 last year - has said he is working with private US investors to try to save a "substantial majority" of the stores.

He said: "The pension deficit was weighing us down and not allowing us to move forward.

"After the administration, when the pensions side of the business is sorted out, we will be able to move on.

"I'm working with US investors to buy a substantial majority of stores."

Mr Chappell also brushed aside questions over the £25m he is reported to have taken out of the business over the last year.

He said: "It's a storm in a teacup. All the money that was taken out was legal and legitimate and went to pay fees."

BHS's collapse is the biggest retail failure since 2008 - when Woolworths went under with the loss of almost 30,000 jobs.

Business minister Anna Soubry has said the Pensions Regulator is investigating a "number of concerns and indeed allegations" over the collapse. It has the power to force former owners going back six years to contribute to pensions deficits (Other OTC: UBGXF - news) .