Exclusive: Firebrand MP Frank Field hopes to lock horns with Sir Philip Green over Arcadia sale
One of Westminster’s most dogged MPs is hoping to lock horns once again with retail tycoon Sir Philip Green following reports that the former BHS owner is looking to sell his retail empire to a Chinese textiles conglomerate.
City A.M. understands Frank Field, the Labour MP who spearheaded the parliamentary investigation into Green’s doomed sale of BHS, is planning to write to the colourful retail boss with questions about a possible sale of his Arcadia Group to Shandong Ruyi.
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Field and Green have sparred in the past, with the Arcadia boss threatening to sue the Labour MP on multiple occasions over the BHS saga. Green accused Field of running a “kangaroo court” in his search for answers about BHS, which was sold for £1 to serial bankrupt Dominic Chappell, who had no experience of running a retail business.
Now, Field wants assurances that Arcadia’s pensioners will not be left out-of-pocket in any sale of the group, which comprises brands such as Topshop, Evans and Dorothy Perkins. Arcadia has a pension deficit, which could stand at nearly £1bn according to some estimates. Field’s Work and Pensions Select Committee will discuss the issue this week.
Sources close to Arcadia said any letter from Field would be met with short shrift from Green, who would likely send back a “two word” response.
Textile manufacturer Shandong Ruyi is already established on the UK high street; it currently controls British clothing brand Aquascutum and owns a 51 per cent stake in Trinity Listed, owner of Savile Row tailor Gieves & Hawkes, which has been making suits in the UK for 250 years.
The firm has been shopping for retail interests across Europe in recent months, acquiring a controlling stake in Swiss luxury brand Bally in February.
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The Sunday Times reported that Green had kicked-off talks with Shandong Ruyi, but that discussions were at an early stage.
Field’s crusade against Green culminated in a parliamentary report that branded the Topshop boss the “unacceptable face of capitalism”. The report was followed by a high-profile debate in the House of Commons, with MPs voting to recommend Green’s knighthood be rescinded. The Honours Forfeiture Committee, a Cabinet Office committee with the power to remove knighthoods, has still not decided on Green’s fate because it is awaiting the outcome of the Insolvency Service’s investigation into BHS.
Green sought to shake-off criticism from Field and other MPs when he made a substantial settlement with the Pensions Regulator following BHS’ demise. In an unprecedented move, he paid out £363m to BHS’ pension scheme, with the regulator agreeing to stop all proceedings against him.