Friday, August 19, 2022

Fight breaks out between BHS creditors

A conflict has broken out among BHS creditors, one of which has stated the Pension Protection Fund (PPF) is overriding other creditors’ interests.

Duff & Phelps, one of two administrators appointed to oversee the sale of BHS assets, has accused the PPF of “having control over the entire process” and increasing the cost of working on the department store’s collapse.

Tensions between the two firms were already high because the PPF had insisted a second administrator must be brought in alongside Duff & Phelps, as it was hired by former BHS owner Sir Philip Green and may have close ties to the billionaire.

Last month Duff & Phelps stood down when BHS was officially put into liquidation, posting a £4 million bill for their work.

Labour MP Frank Field questioned this bill, citing the comparative £800,000 fee of the second administrator FRP Advisory.

READ MORE: BHS enters liquidation

In a response, Duff & Phelps managing director Phil Duffy said that the whole process had been “slightly unusual” because “one creditor (PPF) had control over the entire process”.

He continued to explain that the needs of the other creditors were ignored and the views were “overridden” by the PPF, referring specifically to the appointment of a second administrator.

The collapse of BHS notoriously left the pensions of 22,000 staff at risk, leaving a £570 million deficit in its wake, a problem which the PPF has been tasked to solve.

Green has been repeatedly pushed to contribute from his own pocket, but so far his offers have led no where.

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