Ashley’s BHS bid blocked by ‘insane’ Green, says Chappell

The sad tale of BHS took a further grim twist yesterday as Dominic Chapell, the former owner of BHS, and Darren Topp, the high street retailer’s former chief executive, gave evidence to a select committee of MPs.

BHS went into administration last week with 11,000 workers facing life on the dole. However, Chappell said that Sports Direct’s Mike Ashley was ready and willing to save the business – but that the move was allegedly blocked by Sir Phillip Green who sold BHS for just £1 last year, and who called in £35m worth of debt when he learned of the proposed deal.

Addressing MPs, Chappell said: “Mike Ashley wanted to buy BHS, but Philip Green went insane and was screaming and shouting down the phone at me.”

Chappell wasn’t immune to criticism himself. Before he answered MPs questions for two hours, he was laid into by former BHS finance consultant Mike Hitchcock who accused him of being a “mythomaniac” and a “Premier League liar and Sunday league retailer”.

Hitchcock also said that Retail Acquisitions, the vehicle set up by Chappell to buy BHS last year, had taken £17m out of the firm – putting only £10m in.

Things got even grubbier when Topp allegedly accused Chappell of threatening to kill him, claiming he was “ex-SAS”.

Topp then said that Chappell had allegedly tried to move £1.5m out of BHS to a Scandinavian company called BHS Sweden. “He had has fingers in the till,” added Topp.

Asked by MPs why he thought he’d been unable to find other buyers than Ashley, Chappell said that no-one would take on the £571m pension deficit.

He railed at Ros Altmann, the Pensions Minister, saying: “We were held to ransom by Philip’s dispute with the Pensions Minister. I arranged to see her three times and each time she cancelled the meeting.”

Chappell ended the hearing saying he was “very upset” about the 11,000 people who are set to lose their jobs.

The union representating BHS workers still haven’t given up hope that adminisrators Duff & Phelps will find a buyer.

Dave Gill, Usdaw national officer said: “We hope that the various allegations made in the select committee hearing do not divert attention away from finding a suitable buyer for the business, even at this late stage.

“Whilst former and current senior people from BHS engage in a round of finger pointing, the 11,000 staff are staring down the barrel of a gun, facing unemployment in the next few weeks.

“We know there are very serious questions that need to be answered about the past, but I am urging the administrators to redouble their efforts to find a buyer, it’s the very least that the long-serving and loyal BHS staff deserve. In the meantime we are providing the support and advice our members in BHS require at this very difficult time.”