Philip Green

For other people named Philip Green, see Philip Green (disambiguation).
Sir Philip Green

Green in 2007
Born (1952-03-15) 15 March 1952
Croydon, England
Residence Monaco[1]
Nationality British
Occupation Businessman
Years active 1967–present
Net worth £6.2 Billion (2016)[2]
Political party Conservative
Spouse(s) Tina Green
Children Chloe
Brandon
Stasha Palos (stepdaughter)
Brett Palos (stepson)

Sir Philip Nigel Ross Green (born 15 March 1952) is a British businessman and the Chairman of the Arcadia Group, a retail company that includes Topshop, Topman, Wallis, Evans, Burton, Miss Selfridge, Dorothy Perkins, and Outfit. The BHS department store chain was formerly part of the group.

Biography

Green was born on 15 March 1952 in Croydon, in south London,[3] the son of a successful property developer and retailer.[4] He has a sister, Elizabeth, five years his senior. His family moved to Hampstead Garden Suburb, a middle-class enclave in north London, and at the age of nine he was sent to the now-closed Jewish boarding school Carmel College in Oxfordshire.

When his father died of a heart attack, Green was in line to inherit the family business at the age of twelve. After leaving boarding school at 15, he worked for a shoe importer before travelling to the US, Europe and the far east. It was on his return that he set up his first business with a £20,000 loan backed by his family (or £216,000 in 2014 pounds) at age 21, importing jeans from the far east to sell on to London retailers. [5] [6][7]

In 1979, Green bought up the entire stock of ten designer label clothes sellers who had gone into receivership for extremely low prices. He then had the newly bought clothes sent to the dry cleaners, got them put on hangers, wrapped them in polythene to make them look new, and then bought a place to sell them to the public.[8]

Amber Day

In 1988, he became Chairman and Chief Executive of a quoted company called Amber Day, a discount retailer. The shares performed well, but then suffered a series of profit downgrades and in 1992 he resigned when the company failed to meet its profit forecast.[9]

BHS, Arcadia, Topshop

Next, Green assisted Tina Green in the purchase of the Arcadia Group, which owns High Street chains such as Burton, Dorothy Perkins, Evans, Miss Selfridge, Outfit, Topshop/Topman and Wallis in 2002. The company was briefly owned by Green but sold to Tina Green[10] within 24 hours, with Philip acting as CEO.

When The Guardian newspaper investigated a proposed takeover of Safeway in 2003, Green responded to queries about Arcadia's accounts by insulting and swearing at the journalists.[11]

Charitable works and other activities

In April 1980, Green registered a philanthropic initiative, the Kahn Charitable Trust, with a vision of "putting lost smiles back on the faces of less privileged persons across the globe."[12]

Green is a supporter of the Fashion Retail Academy[13] and the industry charity Retail Trust.[14] Green was knighted on 17 June 2006.

In May 2007, after the disappearance of Madeleine McCann in Portugal, Green donated £250,000 as a monetary reward for any useful public information.[15] He also gave the McCanns the use of his private jet to allow them to fly to Rome for a Papal visit.[16]

In 2010, Green donated $465,000 for new beds at the Royal Marsden cancer hospital, after his wife Tina’s mother died there. He also spent more than $150,000 for an Alexander McQueen dress at Naomi Campbell’s Fashion for Relief charity event.[17]

In the same year, Green donated £100,000 to the Evening Standard's Dispossessed Fund which aims to support London's poorest people.[18]

He was reportedly the BBC's first choice to front the UK franchise of The Apprentice; however, at that time in 2004, he was too busy with Arcadia's attempted takeover of Marks and Spencer.[19]

Personal life

Green is based during the week at a London hotel, spending the weekends with his South African wife and owner of Arcadia Tina Green and their children Chloe and Brandon in an apartment in Monaco.[20]

For his son's bar mitzvah in 2005, he spent £4 million on a three-day event for over 200 friends and family in the French Riviera. He also hired Andrea Bocelli and Destiny's Child to perform. For his nephew, Matt, he threw a Bar Mitzvah at Madame Tussauds, where Simon Cowell and Louis Walsh were guests and One Direction performed. Matt and Chloe shared a birthday party in December 2011, at One Mayfair, where Rihanna sang, and many personal friends of the family attended. The star-studded bash was featured in The Sun newspaper and cost over £1 million.[21] For his 50th birthday, he flew 200 guests in a chartered Airbus A300 to a hotel in Cyprus for a three-day toga party, where they were serenaded by Tom Jones and Rod Stewart, who was reportedly paid £750,000 for a 45-minute set. For his 55th birthday, he flew 100 guests 8,500 miles in two private jets from London Stansted Airport. They arrived at the exclusive Maldives resort of Four Seasons: Landaagiraavaru, an eco-spa on a private Indian Ocean island.[22]

Among Green's more extravagant possessions are a 208 ft/£32 million Benetti yacht Lionheart[23] and a £20 million Gulfstream G550 private jet.[20] For his birthday, his wife bought him a solid gold Monopoly set, featuring his own acquisitions.[24]

His tax avoidance dividend scheme was criticised by many publications as a return of the "unacceptable face of capitalism"'. A number of tabloids made light of his invitations of many prominent Hollywood figures to his birthday parties, many of whom commented they had not heard of him.

His business hero is Sir Charles Clore, who built the Sears Plc UK retail empire from next to nothing in the 1950s and 1960s.[25]

Football involvement

Green is a football fan and a Tottenham Hotspur supporter.[26] In 1987, he suggested to Irving Scholar, the Spurs Chairman, that Tony Berry be appointed to the board.[27] In 1991, he helped Terry Venables raise the last £500,000 needed to purchase shares in the club.[27]

He was also involved in the transfers of Rio Ferdinand from Leeds United and Louis Saha from Fulham to Manchester United.[27]

He is heavily involved with Everton Football Club due to his friendship with chairman Bill Kenwright, but has no intention of formally investing in the club.[28] He arranged for another friend, Planet Hollywood's owner Robert Earl, to purchase shares from former director Paul Gregg during a struggle for control of Everton in 2004.[29] He offers business advice to the club alongside Tesco CEO Terry Leahy and helps negotiate player transfer fees with agents.[30]

Political connections

Two weeks prior to the 2010 general election, Green came out in support of David Cameron, George Osborne and the Conservative Party, stating that "[Cameron and Osborne] understand what needs to be done. They get it."[31]

In August 2010, Green was asked by Cameron, then recently elected as Prime Minister, to carry out a review of government spending and procurement.[32] Green's summary report, Efficiency Review by Sir Philip Green,[33] published in October 2010, alleged significant failings in government procurement processes.

Criticism

Tax avoidance

Topshop Oxford Circus damaged by anti-cuts protesters in March 2011

Green became the target of activist group UK Uncut in November 2010 for alleged corporate tax avoidance. The group targeted Green specifically as a government advisor.[34]

Taveta Investments, the company used to acquire Arcadia in 2002, is in the name of Green's wife, Tina Green, a Monaco resident, resulting in a significantly lower tax liability than the £150 million that would be payable if a UK resident owned the company.[35] When Green paid his family £1.2 billion in 2005, it was paid for by a loan taken out by Arcadia, cutting Arcadia's corporation tax as interest charges on the loan were offset against profits.[36]

Worker rights

Arcadia has been criticised for the pay and conditions of both overseas and UK workers by anti-sweatshop groups such as Labour Behind the Label, No Sweat and the student activist network People & Planet.[37] Green denied allegations in The Sunday Times made during 2007 that his firm used overseas sweatshops where workers in Mauritius were paid pitiful wages.[38] In 2010, Green was again accused of using sweatshops, this time by Channel 4's Dispatches programme. It was asserted that he was using factories in Britain in which workers were paid less than half the legal minimum wage.[39]

Anti-Irish outburst

In 2003, when The Guardian was conducting an investigation into Green's corporate finances, Green responded to the publication's queries on the subject with a string of expletive-laden outbursts about the Guardian's financial editor, Paul Murphy. Green said: "He can't read English. Mind you, he is a fucking Irishman." He later apologised to the Irish, after customers threatened to boycott his stores.[40]

Demise of BHS

Green bought BHS for £200m in 2000, but the firm performed poorly so he sold it for just £1 in 2015. On sale BHS had debts of £1.3bn, including a pensions deficit of £571m.[41] Despite deficit of £571m, Green and his family collected £586m in dividends, rental payments and interest on loans during their 15-year ownership of the retailer. Referring to the conduct of Green, Angela Eagle, the shadow business secretary, said: "In this situation it appears this owner extracted hundreds of millions of pounds from the business and walked away to his favourite tax haven, leaving the Pension Protection Scheme to pick up the bill."[42]

References

  1. ↑ "Piers Morgan On Monte Carlo". Youtube.com. 2011-04-03. Retrieved 2013-07-22.
  2. ↑ "Philip & Cristina Green - Forbes". 24 April 2016.
  3. ↑ Brown, Jonathan (21 August 2010). "Sir Philip Green: Taxing issues for the rag trade king". The Independent (London).
  4. ↑ The Independent: "Sir Philip Green, the maverick taking the High Street to Broadway" By William Langley 4 April 2009
  5. ↑ China Influence. "The Brits that Changed China". Phillip Green.
  6. ↑ http://www.ft.com/intl/cms/s/2/45992860-5cb4-11e5-a28b-50226830d644.html
  7. ↑ http://www.bankofengland.co.uk/education/Pages/resources/inflationtools/calculator/flash/default.aspx
  8. ↑ Vincent, Sally (23 October 2004). "How I did it". The Guardian (London).
  9. ↑ Blackhurst, Chris; Martin Tomkinson (27 September 1992). "Emperor in New Clothes". The Independent on Sunday (London). Retrieved 22 December 2010.
  10. ↑ This Is Money. "Uncovered: Green's Empress of Arcadia". This is Money. Retrieved 23 December 2011.
  11. ↑ "Days of anger, shouting, abuse and threats". The Guardian (London). 4 March 2003. Retrieved 25 April 2009.
  12. ↑ "KAHN CHARITABLE TRUST | Charities Ka to Kd". Divide.org.uk. Retrieved 2013-07-22.
  13. ↑ Butler, Sarah; Long, Carola (1 November 2006). "Students learn to sell fashion". The Times (London).
  14. ↑ Shields, Amy (27 January 2009). "Retail Trust raises over £1m". Retail Week. Retrieved 23 December 2011.
  15. ↑ Harry Potter Author Adds To Reward |Sky News|MADELEINE Archived 15 May 2007 at the Wayback Machine.
  16. ↑ "Finding Madeleine". Findmadeleine.com. Retrieved 2013-07-22.
  17. ↑ "Society: Fashion: Sir Philip Green | People > Insiders". W Magazine. Retrieved 2013-07-22.
  18. ↑ Chris Blackhurst (2010-07-29). "Topshop boss Sir Philip Green gives £100,000 to help London's Dispossessed - News - London Evening Standard". Standard.co.uk. Retrieved 2013-07-22.
  19. ↑ Randall, Jeff (13 June 2008). "The Apprentice is to real business what Monopoly is to property". The Daily Telegraph (London). Retrieved 22 May 2010.
  20. 1 2 Haynes, Deborah (30 May 2004). "Profile Philip Green The fastest billionaire is on his Marks". The Times (London). Retrieved 22 May 2010.
  21. ↑ "Billionaire hires Destiny's Child". BBC News. 14 May 2005. Archived from the original on 24 October 2007. Retrieved 22 May 2010.
  22. ↑ Vasagar, Jeevan (12 March 2007). "Pack your shorts, it's time for Sir Philip Green's birthday party". The Guardian (London). Retrieved 22 May 2010.
  23. ↑ Woollard, Deidre (7 June 2006). "Philip Green's Lionheart Yacht". Luxist. Retrieved 23 December 2011.
  24. ↑ Robinson, James (28 June 2009). "Sir Philip Green: man with a fine attention to retail". The Guardian (London). Retrieved 22 May 2010.
  25. ↑ Martin Barrow Health Editor 23 December 2011 12:01 am (2 December 2011). "Entrepreneurs – Times Online". The Times (London). Retrieved 23 December 2011.
  26. ↑ Peston, Robert. Who Runs Britain. pp. 97–98
  27. 1 2 3 Bose, Mihir (26 Oct 2006). "Green oils the wheels of so many deals in football". London: Telegraph. Retrieved 14 January 2010.
  28. ↑ "Everton chief executive resigns". BBC. 30 July 2008. Archived from the original on 23 July 2011. Retrieved 22 May 2010.
  29. ↑ "Green at heart of Everton battle". Evening Standard. London.
  30. ↑ Conn, David (14 September 2005). "Darkness returns to issue of agents' dual payments". The Guardian (London). Retrieved 14 January 2010.
  31. ↑ Fletcher, Richard (23 April 2010). "General Election 2010: David Cameron 'gets it'by giving tax cuts to the tax i cant dodge says Sir Philip Green". The Daily Telegraph (London).
  32. ↑ "Sir Philip Green to lead Government Efficiency Review". Cabinet Office. 11 October 2010. Retrieved 23 October 2010.
  33. ↑ Green, Sir Philip (11 October 2010). "Efficiency Review by Sir Philip Green" (PDF). Cabinet Office. Retrieved 23 October 2010.
  34. ↑ Tayloy, Matthew (29 November 2010). "Philip Green to be target of corporate tax avoidance protest". The Guardian (London). Retrieved 30 November 2010.
  35. ↑ Mathiason, Nick (27 March 2005). "Where the rich stash their cash". The Observer (London). Retrieved 25 April 2009.
  36. ↑ "Analysis: The rich get richer in poor old Britain". Independent on Sunday (London). 19 March 2006. Retrieved 25 April 2009.
  37. ↑ "Topshop". People and Planet. Retrieved 23 December 2011.
  38. ↑ "Sir Philip Green rejects Sunday Times allegations over sweatshop labour". Abcmoney.co.uk. Retrieved 22 July 2013.
  39. ↑ Tarley, Rachel (8 November 2010). "Dispatches, TV review". Metro. Retrieved 23 December 2011.
  40. ↑ Finch, Julia (5 March 2003). "Threat of consumer boycott leads to Bhs owner issuing apology to the Irish". The Guardian (London).
  41. ↑ "The demise of BHS on the High Street". BBC News Online. 25 April 2016. Retrieved 26 April 2016.
  42. ↑ Graham Ruddick; Sarah Butler (25 April 2016). "BHS paid more than £25m to owner in 13 months before administration". The Guardian. Retrieved 26 April 2016.

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