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BHS & Philip Green

Community Veteran
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Registered: 02-08-2007

BHS & Philip Green

At one  time the BHS pension fund was in the Black, now it is in the red to the tune of £571 million.

How can that be ? Surely a pension fund is seperate to the assets of a company as the fund belongs to those people who have contributed to it ?

If money is taken from that fund is it not theft ? From what I can gather nothing illegal has happened but how can that be.

Years ago the same or similar thing happened with Maxwell ? Were no lessons learned ? Was the law not changed ?

 

Perhaps someone can explain it to me as I cannot understand it.

Thank goodness I or anyone I know did not work for BHS, loss of a job and loss of most of your pension must be depressing, even more so as it likely went to pay for one of his yachts.

12 REPLIES
Community Veteran
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Re: BHS & Philip Green

I think it's quite obvious what happened. Funds were probably transferred abroad into an "investment" and ended up in his personal account paying for his nice floating hotel.

The man is sick. No doubt artmo would claim he's done a lot for the economy etc over the years but lets face it, anyone at or near the top is power and money hungry and they don't give a damn who they walk over or destroy in order to get it. For these people it is an OCD. They are mentally disturbed.

I need a new signature... i'm bored of the old one!
Luzern
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Re: BHS & Philip Green

By no means am I any sort of advocate for PG, but is he the sole cause of the pension fund's parlous state? Where were the trustees; did they fulfill their duties with all diligence? If you care to look up their duties, they are quite onerous. Also events and government legislation over the years may have contributed to the debacle over the years. From here are some examples.

1. Nigel Lawson decision to tax pension fund surpluses
2. Successive extra mandatory costs - preservation, deferred pension revaluation
3. 1995 Pensions Act - MFR, priority order, limited price indexation
4. Removal of ACT relief
5. Employer contribution holidays
6. Employer use of surpluses for industrial restructuring
7. Trend to earlier retirement expectations
8. Increasing longevity
9. Actuaries investment and mortality assumptions too optimistic
10. Benefit enhancements which could not be removed
11. Maturing of schemes (i.e. more pensions needing to be paid as workers retire)
12. Over-reliance on equity investment
13. Trustees not questioning actuarial advice
14. Plunging stock markets
15. Sharply lower interest rates

 

No one has to agree with my opinion, but in the time I have left a miracle would be nice.
Community Veteran
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Re: BHS & Philip Green

Rob Maxwell took some unexpected swimming lessons off the Lady Ghislaine. I wonder if the Lionheart has good stern rails?

Now Zen, but a +Net residue.
Minivanman
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Re: BHS & Philip Green

Simple, the man is a crook.

Next question Wink

All views expressed are my own but you can express them too if you want to be right about everything like I am.
Luzern
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Re: BHS & Philip Green

Be honest, guys! How much stuff have you bought from BHS since PG took the helm in 2000? I think I could count on the nail of my little toe. The public face, the actual stores, seemed lacklustre for years. Perhaps the one reasonable department was lighting. 

My personal take is, that whatever PG may have done, customers' drifting away, or worse, was a not inconsiderable factor in the group's demise.

No one has to agree with my opinion, but in the time I have left a miracle would be nice.
Minivanman
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Re: BHS & Philip Green

Indeed, but that does not excuse the fact that both he and his wife sucked out a load of cash from the company. Maybe they were putting the boot into a dying man, but they were still putting the boot in.

All views expressed are my own but you can express them too if you want to be right about everything like I am.
Community Veteran
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Re: BHS & Philip Green

The money siphoned from his companies was effectively paid to Lady Green who is a resident of Monaco.  It is reported that the principality is considering removing permission for her to remain there which will present a problem to her tax-free status.

Minivanman
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Re: BHS & Philip Green

And the rich keep getting richer. How much does one person need?

Wants and needs I guess, wants and needs.

All views expressed are my own but you can express them too if you want to be right about everything like I am.
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Re: BHS & Philip Green

The more someone has the more that person seems to wantRoll eyes

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Luzern
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Re: BHS & Philip Green


Minivanman wrote:

Indeed, but that does not excuse the fact that both he and his wife sucked out a load of cash from the company. Maybe they were putting the boot into a dying man, but they were still putting the boot in.


In case you are saying I'm excusing: I'm not! BTW technically members of the BHS Group are still active. Their turn will come when the administration will finish. As to PG and spouse, you can be sure that the Insolvency Service will be looking deeply, MPs or not. All we post in the end, has no bearing on the potential outcome. 

Other directorships

ARCADIA GROUP BRANDS LIMITED (01016191) ACTIVE

TOP SHOP/TOP MAN LIMITED (02317752) ACTIVE

TAVETA INVESTMENTS LIMITED (04464926) ACTIVE

BHS LIMITED (NF001705) ACTIVE 

Converted / Closed

JANUARY INVESTMENTS LIMITED (03689120) ACTIVE

LANGLEY ROAD INVESTMENTS LIMITED (00718834) ACTIVE

just in case any one is interested. The site Company Check has a lot of info.

No one has to agree with my opinion, but in the time I have left a miracle would be nice.
Minivanman
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Re: BHS & Philip Green

Fair point but yes, it did sound like you were excusing. Sorry if I got that wrong. Smiley

All views expressed are my own but you can express them too if you want to be right about everything like I am.
Community Veteran
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Re: BHS & Philip Green


Minivanman wrote:

And the rich keep getting richer. How much does one person need?

Wants and needs I guess, wants and needs.


They don't... like I said these people are mentally disturbed - it's an OCD.

I need a new signature... i'm bored of the old one!