Philip Green Asked To ‘Plug’ BHS Pensions Defict
Former CEO of BHS’ retail chain Sir Philip Green admitted he wanted to use his money to ‘plug the holes’ in the pensions deficit his former retail chain owes its employees. Now he is encouraged to do so by MPs investigating the BHS pensions deficit.
MP Iain Wright voices out his frustration over BHS’ unfulfilled pledge to sort issues. He had urged the former CEO of BHS to ‘use his cheque book’ and resolve the matter.
The company on the verge of collapse owes about £700m to its employees in pensions. Sir Green said MPs had few formal powers to force him to use his money to plug the pensions deficit.
Due to his questionable selling of the chain for just £1 to former racecar star and already-bankrupt Dominic Chappell about a year before the company’s apparent downfall, Sir Green’s knighthood is in review. His reputation for mismanaging the chain and forsaking its employees is also under fire.
Analysts contend that Sir Green is still liable to bail out the pension deficit as regulators can pursue former owners.
Sir Green, other executives and other shareholders each had withdrawn more than £400m in dividends from the business, leaving its employees with a huge pensions deficit. Due to the Brexit, the value of the deficits may further increase.