MP demands FRC investigates BHS directors

Catherine Neilan
Follow Catherine
BHS To Go Into Administration
BHS entered administration on Monday (Source: Getty)
An MP has written to the head of the Financial Reporting Council (FRC), calling for an investigation into the directors of BHS. Richard Fuller, MP for Bedford, urged Stephen Haddrill to probe the "conduct of directors and advisers, and other relevant interested parties" relating to the sale of BHS by Sir Philip Green to Retail Acquisitions last year. In the letter seen by City A.M., Fuller said the deal "raised serious questions about the efficacy of current regulations, as well as director responsibilities under various acts of Parliament". He claimed it also posed questions about corporate reporting. His intervention comes after the iconic retailer entered administration earlier this week with debts of £1.3bn, of which £571m are carried as pension liabilities. Green, who already faces two rounds of grilling by MPs at the Work and Pensions and Business, Innovation and Skills committees, sold the 88-year-old business to the previously unheard of Retail Acquisitions for £1. At the time he said the firm was well financed. But the head of Retail Acquisitions, Dominic Chappell, had no retail experience and the deal was struck despite other, more established players thought to include South African tycoon Christo Wiese, expressing an interest. It is understood that since BHS entered administration on Monday more than 50 expressions of interest have been received. Chappell is reportedly close to entering a bid, but could not be reached by City A.M. Arcadia has so far declined to comment.