Green Could Be Forced To Address BHS Pension Scheme
The retail chain’s £571m deficit for defined-benefit pensions could have both former owner Philip Green and current owner Dominic Chappell to pay from their own pockets to guarantee the benefits of their long-time employees.
According to the Pensions Regulator the results of their complex investigation and their formal legal proceedings with Sir Green and Mr Chappell revealed that the regulator sent warnings to both parties that they may shoulder the proceedings.
According to Chief Executive Lesley Titcomb of the regulators it was yet to receive “sufficiently credible and comprehensive solutions” from both parties that could help bail out the company from its pensions deposit.
The scheme has 20,000 defined-benefit pensions.
Sir Green had said he would do everything in his power to fix the issue
He added that he had made a “substantial proposal” having him show his available cash that would help support the pension scheme’s huge hole. According to Sir Green, the proposal meanth the BHS scheme avoids the provisions of the Pension Protection Fund and ensure maximum benefits be received by its members.
According to Labour MP Frank Field, the Pensions Regulator had lost its patience with Sir Philip Green’s excuses and empty promises upon sending a 300-page warning notice explaining the liabilities of both parties.
BHS collapsed having lost 11,000 jobs along with a deficit of £571m. Sir Green controlled BHS between 2000 and 2015 wherein he and investors have collected £580m in profits. He then sold BHS to Dominic Chappell who has a record of bankruptcy and has no experience handling retail for just £1.