Sir Phillip: I Put Up £5m To Back BHS Rescue

Former BHS owner Sir Philip Green has said he offered £5m to back a rescue of the retailer by tycoon Mike Ashley earlier this year - rebutting a claim that he tried to block the deal.

Sir Philip is facing tough scrutiny after the collapse of the 88-year-old chain - putting 11,000 jobs at risk - a year after he sold it to former bankrupt Dominic Chappell for £1.

Mr Chappell has told MPs investigating the episode that a "screaming and shouting" Sir Philip - who remained a creditor to BHS after selling it - blocked a rescue by Mr Ashley, the Sports Direct boss and Newcastle United owner.

Sir Philip, who has also appeared before the Commons inquiry into BHS, has now offered further information about the episode, which he said "can now put an end to the suggestion that I tried to block a sale of the business".

"In fact, I tried to support a sale," the retail tycoon wrote in a letter to the joint probe by the Business, Innovation and Skills and Work and Pensions committees.

But the evidence attracted a terse response from Labour MP Frank Field, who chairs the latter committee, ahead of the probe's findings later this month.

Mr Field said: "Sir Philip is aware we are writing our report and is suddenly volunteering all manner of last-minute assistance."

In his letter, Sir Philip said that at a meeting on 27 April, Mr Ashley had told administrators that he wanted to buy the BHS business and that "he would commit to keeping all the shops open and jobs in place until at least the end of 2016".

"The purchase would include buying all of the stock, for which Mr Ashley offered to pay £10m.

"This amount was not acceptable to the administrators.

"It appeared that £15m to close the deal would work and I therefore offered the additional £5m to try to help the business be sold as a going concern."

Sir Philip, whose Arcadia retail empire includes brands such as Top Shop and Dorothy Perkins, said administrators had agreed to meet Mr Ashley a week later to conclude the discussions.

"I was not involved in this next meeting, nor was anyone else from Arcadia," he said. "We were informed by the administrators that no acceptable offer was forthcoming from Sports Direct."