THE UK government is set to review the conduct of Arcadia directors after it was announced on Wednesday, December 2, that Business Secretary Alok Sharma has written to the Insolvency Service.
Arcadia, which collapsed into administration on Monday night, will be reviewed by the Insolvency Service after Sharma asked them to “rigorously and expeditiously” review the report on the conduct of Arcadia’s directors.
Sir Philip Green’s fashion empire, which declined a £50m (€55.8m) emergency loan offer from Mike Ashley’s Frasers Group hours before its collapse, will also be examined into whether its directors caused damage to its pension scheme, which has a deficit of up to £350m (€386m).
Sharma writes: “Given the significance of this case and its implications for thousands of suppliers, pensioners and employees, I would be grateful if you would review their report rigorously and expeditiously as soon as you receive it.
“If you decide that there are grounds for an investigation, I would ask that it looks not only at the conduct of directors immediately prior to and at insolvency, but also at whether any action by directors has caused detriment to creditors or to the pension scheme.”
Thank you for taking the time to read this news article “UK government set to review the conduct of Arcadia directors”. For more UK daily news, Spanish daily news and Global news stories, visit the Euro Weekly News home page.