New controversies emerge over BHS sale

New controversies have emerged pertaining to the 1 pound sale of BHS to Dominic Chappell. LEK, a consultancy company that provided informal support during the bid for BHS, stated in a letter Sir Philip Green believed he would be absolved of responsibility for any future demise of the retailer if it survived under a new owner for “a few years”, according to evidence submitted to MPs.

The company also stated Sir Philip Green would not sell the ailing business to any of his retailer rivals to avoid damage to his reputation should another party have been successful turning the business around.

Investment banking group Goldman Sachs has also come under fire for offering no-fee advice to Sir Philip. The company has been a source of advice for over 12 years, including during the takeover of BHS. Goldman Sachs co-head of European operations Michael Sherwood told MP's big companies do not do significant transactions very often, hence there was no charge. Advisers stick to them like glue in case they do, noted the Financial Times.

The collapse of BHS has resulted in 11,000 job losses and a 571 million pound pension deficit. The case is currently being reviewed by MPs of the Work and Pensions Committee.

Image: BHS Facebook