FRC mulls BHS investigation

FRC mulls BHS investigation

FRC looks into events at BHS following pressure from MPs to scrutinise directors and advisers involved in sale of department store prior to its collapse

ACCOUNTING watchdog the FRC has come under pressure to launch an investigation into the directors and advisers involved in the sale of BHS to Retail Acquisitions in 2015.

In a letter to FRC chief executive Stephen Haddrill, Business, Innovation and Skills (BIS) select committee member Richard Fuller urged the FRC to investigate those involved with the transaction shortly before the retail chain collapsed into administration.

“This transaction has raised serious questions about the efficacy of current regulations as well as director responsibilities,” the letter stated. “It has also drawn the issues of corporate reporting – both in terms of reports issued by boards of directors, and of reports required by boards of directors in transactions resulting in a corporate sale.”

The plea comes after the BIS select committee launched an investigation into the steps taken by Arcadia Group to ensure that Retail Acquisitions Limited (RAL) was a responsible owner.

The inquiry also looks at what checks were undertaken by RAL to verify that BHS was a going concern.

Former BHS owner Phillip Green sold BHS to Retail Acquisitions – led by Dominic Chappell, a former bankrupt and racing driver – for £1, when it was saddled with over £1bn in debts and a £571m pension deficit.

In his response, Haddrill said the FRC “is looking into the events at BHS to determine whether to investigate”.

Share

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to get your daily business insights

Resources & Whitepapers

The importance of UX in accounts payable: Often overlooked, always essential
AP

The importance of UX in accounts payable: Often overlooked, always essentia...

3m Kloo

The importance of UX in accounts payable: Often ov...

Embracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...

View article
The power of customisation in accounting systems
Accounting Software

The power of customisation in accounting systems

3m Kloo

The power of customisation in accounting systems

Organisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...

View article
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y Accountancy Age

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
8 Key metrics to measure to optimise accounts payable efficiency
AP

8 Key metrics to measure to optimise accounts payable efficiency

3m Kloo

8 Key metrics to measure to optimise accounts paya...

Discover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...

View article