The Insolvency Service has said it is undertaking a “comprehensive forensic exercise” into BHS.

In a letter to Work and Pensions Committee chair Frank Field, Insolvency Service chief executive Sarah Albon said she could not provide specific details on the investigation as it may prejudice the outcome of the enquiry.

However, Albon said she could provide details of the investigation process, in which she stated that they have completed the information-gathering first phase of the investigation. As part of this they have secured company records and made initial contact with directors and third parties to obtain information.

“We are now analysing the evidence we have obtained and are seeking detailed explanations from parties of interest,” she wrote.

Furthermore, she revealed they have engaged specialist senior counsel, specialist forensic accountancy advice, and they have acquired specialist IT equipment to deal with the high volume of electronic data.

“A comprehensive forensic exercise is underway to ensure that any possible disqualification action stands up in the legal process,” the letter read.

The Insolvency Service said it is not possible to comment on when the investigation will be completed but Albon remains confident that if the investigation finds grounds for disqualification action against former directors, it will commence “significantly earlier than April 2019”.

Commenting on the letter Field said: “The Committee is very pleased to see that the Insolvency Service has raised its game, appointing specialist counsel and forensic accountancy services to analyse the evidence they have gathered on the sale and collapse of BHS. This, and the fact that they have set down a timetable for commencement of any potential proceedings, are clear signs of how seriously they are now taking this matter. It seems the net is tightening around the former directors of BHS. We – and of course the Forfeiture Committee – will await the outcome of their investigations with great interest.”

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