Business

MPs ask Philip Green to show BHS was going concern

LONDON (Reuters) – A British parliamentary committee has requested billionaire Philip Green to “prove” why he thought retailer BHS may keep in business earlier than it was bought in 2015 for a token one pound, earlier than collapsing a 12 months later.

FILE PHOTO: Sir Philip Green attends the TopShop Spring/Summer 2018 present at London Fashion Week in London, Britain September 17, 2017. REUTERS/Mary Turner

The request from Frank Field, chair of parliament’s work and pensions committee, follows the publication earlier on Wednesday of paperwork from the Financial Reporting Council detailing why the accounting regulator fined PwC over its audit of BHS, then a part of Taveta Group, owned by Green’s household.

PwC had mentioned BHS was a “going concern” regardless of a number of indicators that the business was struggling, the FRC mentioned.

Field has now written to Green, saying the administration of BHS had been answerable for getting ready the mandatory evaluation to assist that view, which ought to then have been examined by the auditor.

“I would therefore like to invite Taveta to publish your going concern assessment to prove that there was indeed a suitable case for presenting BHS as a going concern,” Field mentioned in a letter dated August 15 and made obtainable to the press.

A spokesman for Green was not instantly obtainable for remark.

Reporting by Huw Jones, modifying by Kirstin Ridley

Our Standards:The Thomson Reuters Trust Principles.

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