Treasury Select Committee Member John Mann MP has called on Sir Philip Green to repay the £400 million he took out of BHS in special dividend payments as the firm enters administration.
When Sir Philip Green bought BHS in 2000 the pension fund was in surplus and yet despite making only £87 million in profits during his tenure as owner he took £400 million out of the company in special dividends. The pension fund is now projected to have a deficit of £571 million.
John Mann MP said “Sir Philip Green and his family have made millions out of BHS and its hard working staff. He took over a company with a healthy pension pot, yet when he sold BHS a black hole had appeared in its fund. (guardian 26/04/15 http://www.theguardian.com/business/2016/apr/25/bhs-owner-retail-acquisitions-25m-administration )”
Mann continued “Sir Philip Green has taken over £400 million out of the company and now must be held responsible for the actions that were taken under his stewardship.”
“There is a very simple and honourable solution to this crisis; repay the dividends, live up to the name he has chosen for his new yacht, ‘Lionheart’, or lose his knighthood.”