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World

Green to blame for BHS collapse - UK lawmakers

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Opening sequence

World

Green to blame for BHS collapse - UK lawmakers

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17:46
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COMING UP:Green to blame for BHS collapse - UK lawmakers

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Transcript

00:00:00
>> And I just want to apologize to all the BHS people who've been involved in this, and I->> Labeled the unacceptable face of capitalism, Sir Phillip Green blamed for the collapse of BHS according to a joint parliamentary committee. MPC, the billionaire's greed and disregard for corporate governance led to the demise of the high street chain and the loss of 11,000 jobs.
00:00:22
Reuters UK retail correspondent James Davey says the report is a devastating critique.>> Well the committee found that really that one man was ultimately responsible for the demise of BHS, and that is Sir Philip Green. It found that he basically failed to invest in BHS efficiently, at the same time he allowed the pension deficit to balloon, and he also took out hundreds of millions of pounds, monies which went directly to his family.
00:00:49
>> Retail tycoon Green owned BHS for 15 years, he sold the loss making chain for one pound in 2015 to Dominic Chappell, a serial bankrupt with no retail experience. MPs concluding it was destined to go under, with a 571 million pound hole in its pension fund.>> A way of filling it at the moment, the deficit has reverted to the pension protection fund, and they traditionally, or in the past, they pay out 90% of monies due.
00:01:22
So if the BHS pension is gonna get their 400% payments, that's gonna have to be chopped up in some way. So, the moral obligation, according to the committees, is for Green to basically sign a very big check.>> Green promised to fix the pension mess last month, but he's yet to reach a deal with the pensions regulator.
00:01:46
The report, though, likely to fuel Theresa May's vow to crack down on corporate misbehavior, and ramp up the pressure to revoke Green's knighthood. It was a awarded in 2006 for services to retail.