BHS: Sir Philip Green threatens to sue Frank Field over 'highly defamatory' comments about company collapse

The retail tycoon is under scruntiny following the collapse of the 88-year-old chain

Sir Philip Green made millions out of Bhs before he sold it (Getty)

Sir Philip Green has threatened to sue Frank Field after the MP accused him of behaving like a thief during a radio interview.

The retail tycoon launched the latest salvo in his ongoing war of words with the Work and Pensions select committee chair as it published its scathing report on the collapse of BHS earlier this year.

He demanded that Mr Field apologise publicly for his comments on BBC Radio 4's Today programme within 24 hours or he will have to undertake "other remedies" to which he was "clearly entitled".

In a letter sent to the Labour MP by his solicitors, seen by The Independent, they said: "In that interview you alleged that our client had stolen money, specifically from the BHS and Arcadia pension funds. This statement is highly defamatory and completely false.

"Our client has never stolen any money from BHS, Arcadia or the pension funds and you know that.

"Clearly an allegation that our client is a thief is likely to cause him serious harm."

The letter said there was nothing in the report, co-authored with the Business, Innovation and Skills select committee, to support Mr Field's allegation.

Frank Field said Sir Philip 'behaved like Napoleon' (Justin Sutcliffe)

Sir Philip's lawyers pointed out that although the report and all of Mr Field's comments made during the evidence sessions were protected by parliamentary privilege the interview was not.

In the interview on Monday morning, the Birkenhead MP compared Sir Philip to Robert Maxwell - the notorious former owner of the Mirror Group who stole from the company's pension fund - and Napoleon.

He said there was no corporate governance at the firm as there would be at a public company and accused Sir Philip of having "a collection of people" around him who simply do his bidding.

BHS went into administration with a pensions deficit of £571m just one year after the company was sold to serial bankrupt Dominic Chappell for just £1.

Around 11,000 people now stand to lose their jobs as the company's 88 stores are due to close by 20 August.

Mr Field said: “Money beyond the dreams of avarice have gone up to the Green family and 11,000 workers are now going to hit the dole queues, 22,000 pensioners are actually suffering cuts.

"I think that is worse because he has it in his power to do things. Maxwell didn’t have it in his power and the music stopped while there was no money there.”

He urged Sir Philip to fill the hole in the pension scheme.

Bhs (British Homes Stores) store on Commercial Street in Newport, Wales. All remaining stores are due to be closed by 20 August (Getty)

It comes as the report called for Prime Minister Theresa May to strip the businessman of his knighthood over his conduct.

From pocketing millions in dividends for him and his wife while leaving the company on "life support," to selling it to the "wholly unsuitable chancer" Dominic Chappell, the committees found "little to support the reputation for retail business acumen for which he received his knighthood".

The 66-page document said thousands will suffer from a "litany of failure" while those at the centre of the scandal "walked away greatly enriched".

Responding the report, Sir Philip said: “I have now carefully read the select committees’ report and note their findings. I believe that the report is the predetermined and inaccurate output of a biased and unfair process.

“With the benefit of hindsight, clearly Retail Acquisitions and Mr Chappell were a very bad choice as purchaser on many fronts and I feel badly let down. Sadly, one cannot turn the clock back.

"The disposal of BHS was made one hundred per cent in good faith and I still believe that we provided Retail Acquisitions and Mr Chappell with the appropriate finance (c. £200m of cash and assets) to take the business forward.

“As I told the committees, I am trying to find a solution for the BHS pension and am continuing to work with the Regulator to achieve an outcome.

Former BHS bosses received a grilling from MPs at Portcullis House during the evidence gathering stage of the committees' investigation

“I am sad and sorry for all the BHS people caught up in this horrid story, but I do not believe that this story is not being in any way fairly portrayed.”

Speaking on Sky News, Mr Field described Sir Philip's threat as "disappointing".

He said: "I would have thought his job is actually now to make good the pensions deficit and not chase me around the studios because we are trying to speak to the report which parliament has approved".