Saga of collapsed BHS continues

London - BHS may have collapsed, however the saga as to who is to blame continues, as members of parliament continue their investigation. In a new turn of events, Sir Philip Green faces fresh questioning over the sale, after it was discovered he made an undisclosed 10 million pound payment to the former bankrupt owner Dominic Chappell, who bought the chain for 1 pound.

News of the transfer will heap further pressure on the high-street tycoon over the sale of the loss-making department store in March last year. After administrators failed to find a rescuer, the process of winding up BHS began last week, leaving 11,000 workers in danger of losing their jobs. Frank Field, the Labour MP leading a parliamentary investigation into the deal, said the latest discovery had an “Alice in Wonderland” quality. “It gets curiouser and curiouser, and the unspinning of it all will begin on the 15th of this month when Sir Philip Green appears before us”.

Chappell claimed to senior executives he could arrange a 100 million pound loan from the Bank of China to help save the company just days after he took control last year. Chappell told senior figures at BHS that he needed 7 million pounds to set up a Chinese bank account to arrange the loan. But sources say they never saw documentation for the plan and it later transpired the 7 million pounds had been paid into a client account set up by Chappell’s legal adviser Olswang.

Details of the plan to set up a Chinese bank account have come to light just days after BHS administrator Duff & Phelps started a liquidation of the firm. About 300 head office staff have already been dismissed.

Image:BHS