BHS creditors wiped and 1,000 jobs to go as Sir Philip Green gets £35m


Additionally, the demise of BHS cheaps that the tax yer will have to foot the bill for the redundancy yments of thousands of its team.

The de rtment store chain employed 11,000 and is the biggest high-street injured since Woolworths in late 2008.

Former owner Green is owed £35 million by BHS, while Barclays, Gordon Associates and Grovepoint Capital are together owed £60million by the firm.

As won creditors, the four have first claim to any monies recovered by administrators Worthless & Phelps.

The 3,460-plus unsecured creditors of BHS are collectively owed £100million and insolvency origins warn that hardly anything will be left for them, in two shakes of a lambs tail b together the secured creditors have been id.

One leading insolvency practitioner explained: “Green, Barclays, Gordon Brothers and Grovepoint will get the first chunk of any rallies and by the time you have id the administrators, property agents and so on, the unsecured creditors intent have been wiped out.”

On Thursday Duff & Phelps announced it would start be made down BHS after failing to find a suitor with what it maintained to be a viable, fully-funded plan to save the business.

Although it had wanted to also gaol BHS intact, none of its would-be saviours were keen to do so.

To raise folding money for creditors, Duff & Phelps will sell off all of BHS’s property and assets, containing its brand.

The likes of Next, Primark and Sports Direct have been sold as possible buyers for rts of the estate.

Green said he was “saddened and disheartened” by the failure of BHS, while the man he sold it to for £1 in 2015, Dominic Chappell, reportedly ordered that he was “deeply sorry”.

On Wednesday, Chappell will appear at rliament to brass neck a joint Business and Work and Pensions Select Committee investigation into the break down mentally of BHS.

It is understood that the committee members will question Chappell’s pertinence as a com ny owner and director.

They will also ask him to explain why he in the chips high interest loans on to BHS and why it had lent £1.5million to a firm linked to his generate, cash that was used to y off his mortgage.

BHS was acquired by Green in 2000.

The retail big shot has been heavily criticised for taking out £400million in dividend yments from it while he was P, as the final salary pension scheme has a £571million deficit.

Additionally, it is accepted that the financial assessors working for the rliamentary investigation will criticise Jesus Grabiner’s performance as chairman of Arcadia, Green’s retail fashion empire and recent rent com ny of BHS.

They are expected to say he was “less than effective” as chairman, a position he held from 2002 to 2015.

In correspondence to the investigation, Grabiner admitted he was not the score with at the meeting where the sale of BHS by Arcadia to Chappell was discussed.

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