Survival plan includes dozens of store closures and cuts to pension fund paymentsSir Philip Green’s Arcadia empire has bought back a 25% stake in its Topshop chain from a US private equity firm, as it paves the way for a survival plan that involves clo…Read more
Companies resist reform by arguing tribunal findings relate only to individuals, says MPThe government should take action to end the “rampant injustice” facing some workers in the gig economy, according to a report by the independent MP Frank Field.Fie…Read more
Frank Field MP launches inquiry examining law and enforcement as firms still ‘evade justice’ on worker rightsUber and courier firms including CitySprint are to be called to give evidence to a parliamentary inquiry into gig economy companies which have …Read more
Commons committee presses regulator after £6.5m fine for PricewaterhouseCooper MPs have called on the accountancy regulator to consider investigating PricewaterhouseCoopers’ auditing of Sir Philip Green’s retail empire, after the firm was hit with a re…Read more
Failed government contractor used suppliers to ‘prop up a failing business model’ and conceal true debt, say MPsCarillion used suppliers to “prop up a failing business model” and conceal true levels of debt, say MPs investigating the failed government …Read more
MPs’ committee reveals new evidence showing how bosses sought to boost and protect bonuses despite dire financesCarillion bosses have been accused of demonstrating “greed on stilts” by worrying more about “fat pay and bonuses” for bosses than looking o…Read more
Retail tycoon calls for truce over BHS collapse in letter to Commons committee chair saying everyone is bored
Writing in a letter to the chair of the House of Commons work and pensions select committee at the end of last month, leaked to the Mail on Sunday, the retail tycoon told Field it was time to “avoid another public spat, that you so enjoy”.Read more
MPs will call in directors of both companies this week for a sharp and increasingly effective brand of public grilling
This week will provide further evidence of MPs’ willingness to involve themselves in how big companies are run. On Tuesday the business committee will scrutinise Melrose’s proposed hostile takeover of GKN by questioning both companies’ bosses. Melrose specialises in buying and overhauling industrial companies but Jeremy Corbyn, the Labour leader, has labelled it an “asset stripper” – something Melrose denies.
On Wednesday, members of the business and work and pensions committees will interview former investors in Carillion, in the latest instalment of their joint inquiry into the outsourcing company’s collapse.Read more
FTI Consulting accused government contractor of using aggressive accounting to mask underperformance
Directors of the collapsed government contractor Carillion masked its financial ill-health with aggressive accounting, according to a secret report written last year for banks that were considering lending the company more money to survive.
MPs published the report on Sunday as part of a continuing inquiry into the collapse of a company that provided a host of vital public services, including catering in schools, prison maintenance and construction of new NHS hospitals. Frank Field, chair of the Commons work and pensions committee, said the document was evidence of “gross failings of corporate governance and accounting” at Carillion.Read more
Select committee says Philip Green had only a ‘tenuous grasp’ of Carillion’s crisis
Carillion’s former chairman Philip Green had only a “tenuous grasp” on the crisis in the construction firm’s finances, and was working towards an “upbeat announcement” to the City just five days before unveiling a £845m writedown, board minutes of the collapsed group reveal.
The board also rejected advice from its brokers that the company would be unable to raise emergency funds, describing their pessimistic view as “not credible” and then hiring alternative advisers.Read more