UK plc sleepwalking into BHS-style black hole, pensions experts warn

Pension experts told corporate Britain today to get their business in order, in the wake of the commotion surrounding collapsed BHS’s £571 million pension fund black hole.

Richard Butcher, managing director at trustee company PTL, told the Standard that British companies should learn from BHS: “Make sure your business adapts and survives. Don’t ignore your pension scheme.

“Select committees, the pensions regulator and trustees are under pressure. None of this points to the next round of valuations being more relaxed,” added Butcher, who sits on the independent governance committee of Standard Life.

The comments come a day after BHS’s former owner Sir Philip Green gave six hours of evidence to a parliamentary committee investigating the collapse of the retailer in April. Green, who sold the 163-store chain to Retail Acquisitions in March 2015, pledged to resolve the pensions “mess” affecting some 20,000 members.

The Topshop tycoon admitted there were “very very very few” conversations with any of the trustees. But Professor David Blake, director of the Pension Institute at Cass Business School warned of more such cases from other firms.

Business select committee chair Iain Wright said the inquiry is considering calling his wife, Lady Green, but it was “unlikely”.