Sir Philip Green accused of selling BHS to avoid liability in pension scheme

London - Sir Philip Green sold off BHS to avoid pension liability should the high street retailer collapse, according to the new report published by the Pension Regulator into the matter.

Sir Philip Green previously sold BHS for 1 pound to Retail Acquisitions in March 2015, before it collapsed in April 2016 with a pension deficit of 571 million pounds. The highly-anticipated report from the Pension Regulator concludes that the "main purpose of the sale [to Retail Acquisitions] was to postpone BHS’s insolvency to prevent a liability to the schemes falling due while it was part of the Taveta group of companies [the parent company for Arcadia Group], ultimately owned by the Green family, and/or that the effect of the sale was materially detrimental to the schemes."

The report outlines the Pension Regulator's examination of the series of event, its own involvement in the case and as well as the pension settlement reached with Green earlier this year. The regulator argues that Sir Green was involved in the schemes, the appointment of new trustees and advisers, and the sale of BHS, which made him a "key decision-maker" in BHS and its pension deficit.

Sir Green previously came to an agreement with the Pension Regulator in February, who in turn dropped its case against him when he agreed to given 363 million pounds to help plug the deficit. However, the regulator does note that Sir Green made a series of offers before hand which were "rejected" by the regulator, as they were too low.