Reports suggest that legal action is being considered by the pensions regulator against the Green family to reach a settlement to cover the shortfall in the pension fund established for BHS employees. It is understood that an investigation is underway into whether the Green family sought to avoid their responsibilities to the failed store chain’s 20,000 pension fund members. This would expose the extent of funds transferred out of BHS by the Greens as well as the full background of the offloading sale of the business by Arcadia to Dominic Chappell. The investigation is expected to be complete in December. Meanwhile, Sir Philip Green is allegedly working toward a compromise that would bring the investigation to an early close.
With the final 22 BHS stores having now been closed by the administrators, affected former employees, including many now in retirement, are watching developments closely. In the wider sector, large scale employers can expect to see wide reaching legislation reforms surrounding the management of pension funds as a result of this high profile scandal.
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