BHS: First Report of the Work and Pensions Committee and Fourth Report of the Business, Innovation and Skills Committee of Session 2016-17. Report together with formal minutes relating to the report

BHS: First Report of the Work and Pensions Committee and Fourth Report of the Business, Innovation and Skills Committee of Session 2016-17. Report together with formal minutes relating to the report
Document type
Report
Corporate author(s)
Great Britain. Parliament. House of Commons. Work and Pensions and Business, Innovation and Skills Committees
Publisher
TSO
Date of publication
25 July 2016
Series
House of Commons papers, session 2016/17; HC 54
Subject(s)
Management & leadership: including strategy, public sector management, operations and production
Personal subject(s)
Philip Green
Corporate subject(s)
British Home Stores
Collection
Business and management
Material type
Reports

Download (1.2MB )

Your use of this content is subject to the terms and conditions of this portal

BHS (British Home Stores), which was founded in 1928, was bought by Sir Philip Green in 2000. It became part of the Taveta group, which is ultimately controlled by Lady Green, in 2009. On 11 March 2015 it was sold to Retail Acquisitions Limited (RAL), owned by Dominic Chappell. BHS went into administration on 25 April 2016 and now faces being broken up: putting 11,0000 jobs at risk as well as being the end of a longstanding fixture of the British high street.

The Committee chose to investigate BHS because: 

'...it encapsulated many of our ongoing concerns about the regulatory and cultural framework in which business operates, including the ethics of business behaviour, the governance of private companies, the balance between risk and reward, mergers and acquisitions practices, the governance and regulation of workplace pension schemes, and the sustainability of defined benefit pensions.'

The report considers the actions and conduct of those who owned and operated BHS, those involved in the company's March 2015 sale and acquisition, and those responsible for protecting the pension fund.

  • Chapter 2: Shows how the Green family became incredibly wealthy, partly on the back of BHS, but in doing so reduced the capacity of the company to invest and succeed.
  • Chapter 3: Sets out the growth of BHS’s pension deficit and the repeated failure of Sir Philip Green and his directors to take opportunities to resolve it.
  • Chapter 4: Explains how BHS was hurriedly sold to Dominic Chappell and his company Retail Acquisitions Limited (RAL), who came to the deal with no new money or sustainable means of raising any. It also explores the role of advisors.
  • Chapter 5: Considers corporate governance in the Taveta group.
  • Chapter 6: Examines the Retail Acquisitions Limited (RAL) ownership of BHS.
  • Chapter 7: Conclusions.
  • Chapter 8: Recommends further action.The Committee has stated that it supports investigations by the Financial Reporting Council, the Pensions Regulator, the Insolvency Service and the Serious Fraud Office.

Contains Parliamentary information licensed under the Open Parliament Licence v3.0

Further information

For the evidence submitted to the inquiry and other information, please see:

https://www.parliament.uk/business/committees/committees-a-z/commons-select/work-and-pensions-committee/inquiries/parliament-2015/bhs-inquiry-16-17/publications/

Related to Management & leadership: including strategy, public sector management, operations and production

The invisible drag on UK R&D: how corporate incentives within the FTSE 350 inhibit innovation

Downloadable paper looking at the incentive packages of FTSE 350 firms

The myth of shareholder stewardship: how effectively do shareholders oversee FTSE 100 CEO pay?

Downloadable briefing on the voting patterns of shareholders on FTSE 100 CEO pay

The what, the why and the how of purpose: a guide for leaders

Downloadable white paper defining what organsiational purpose is and how it can help drive performance.

21st century leaders: building employability through higher education

Downloadable report looking at what employers think should be done to help prepare students for working life.

More items related to this subject

Related to TSO

BHS: First Report of the Work and Pensions Committee and Fourth Report of the Business, Innovation and Skills Committee of Session 2016-17. Report together with formal minutes relating to the report

BHS (British Home Stores), which was founded in 1928, was bought by Sir Philip Green in 2000. It became part of the Taveta group, which is ultimately controlled by Lady Green, in 2009. On 11 March 2015

A reconsideration of tax credit cuts: report, together with formal minutes relating to the report

The 2015 Summer Budget proposed draconian cuts to in-work tax credits in 2016-17. Even when combined with the welcome increase in the income tax personal allowance and the National Living Wage, these

Education, skills and productivity: commissioned research

The Education Committee and the Business, Innovation and Skills Committee agreed to carry out joint work on the contribution that education and skills make to productivity. In preparation for this work,

Welfare-to-work: report, together with formal minutes relating to the report

The Work Programme has streamlined the procurement of welfare-to-work, created a stable, GB-wide welfare-to-work infrastructure, and now produces a similar level of job outcomes for mainstream participants

More items related to this publisher