Sir Philip Green’s assets, including his £100mn superyacht, could be seized by the courts if he refuses to comply with a legal demand to cover the £571mn deficit in the BHS pension scheme, the chief executive of the Pensions Regulator (TPR) has said.
Lesley Titcomb told the work and pensions select committee that a court would determine how to raise funds from the billionaire tycoon, including possible seizure of assets, if he does not pay up when a legal demand is issued, or reach a settlement with the regulator.
Titcomb said: “If we are talking about a contribution notice, that creates a normal legally enforceable debt to the scheme and it would then be the scheme trustees or the PPF (the Pension Protection Fund) who, with our full support in any way, shape or form we could offer, would seek to recover that debt through the courts. The courts would determine how that would be achieved.”
It is highly unlikely that Green’s yacht will be seized. However, one pensions expert said the “prospect of the bailiffs on the gangplank” might focus the retail tycoon’s mind on sorting out the BHS pension deficit.
A parliamentary investigation into the demise of the retailer found that BHS had been systematically plundered under its former owners Green and Dominic Chappell.
Green controlled the business for 15 years until he sold it to Chappell, a three-time bankrupt, for £1 in March 2015. Green, his family and other BHS shareholders collected at least £580mn from the retailer, while Chappell’s company Retail Acquisitions was paid an estimated £17mn.
TPR has started legal proceedings against Green, Chappell and their companies in an attempt to plug the pension deficit. It has issued warning notices to the former owners outlining why they are liable to support the pension scheme.
Green and Chappell now have the opportunity to respond to the warning notices before a determinations panel, an independent body within TPR, decides how much they must contribute to the BHS pension scheme. The determinations panel ruling is a legal demand, but could be appealed all the way to the Supreme Court by Green and Chappell.
Titcomb said the panel was unlikely to meet until the middle of next year and the “door remains open” to any settlement offers from Green.
TPR is understood be seeking at least £300mn from Green and said it is yet to receive a “credible and comprehensive offer”.