MPs have ordered Olswang to reveal details of the fees it was paid during the sale of collapsed retailer BHS, it has emerged.
The House of Commons Works & Pensions committee has asked Olswang about the amount it was paid by Retail Acquisitions, which purchased BHS, and what due diligence it did on the money received.
In a letter to Olswang partner Stephen Hermer, committee chair Frank Field MP asked for information on the total amount of fees paid to the firm.
Field asked Hermer to provide details including the amount of fees contingent on the success of the sale, and for information on the due diligence process it carries out to establish the source of fees. Field said the committee also wanted to know “how many steps back does Olswang look to trace the ultimate source of such monies”.
In the letter, dated Tuesday (31 May), Field also said that Paul Budge, finance director at BHS’s former owners Arcadia, had given evidence to the committee stating that Retail Acquisitions had put £35m into an escrow account with Olswang. He asked Hermer what steps the firm had carried out to find out how this sum had been raised.
The firm has until 6 June to provide the information. Financial adviser Grant Thornton has also been asked to reveal details of the fees it was paid for its role on the sale.
Arcadia, represented by Linklaters, sold BHS to Retail Acquisitions in 2015 for £1 with Olswang advising the buyers.
The retailer went into administration in April, prompting questions to be raised about the sale. Last week Linklaters, Olswang and pensions advisers Eversheds and Nabarro all appeared before the inquiry led by the Work & Pensions and Business, Innovation & Skills committees.
