Saunders decides to quit Bhs board

CONTROVERSIAL banker Robin Saunders is to quit the board of department store chain Bhs, it emerged on Tuesday.

She will step down at the next board meeting in two weeks. Her departure signals that she is starting to sever ties with her employer WestLB, which provided funding when billionaire Philip Green bought Bhs.

Bhs said Saunders is leaving because the retailer will soon repay all the debt it owes to the German bank.

Green borrowed £200m in 2000, mainly from WestLB. All of this will be repaid by the end of November.

Green remains a friend of Saunders, sending his 'warmest thanks' for her work. She personally owns 0.5% in Bhs, worth an estimated £5m.

Saunders could probably have remained on the board, but it is thought she wants to make it obvious she is clearing her desk at WestLB.

Her relationship with the German bank has deteriorated in recent months. WestLB was forced to write off £425m on a TV rentals deal signed off by Saunders. It no longer considers her principal finance division a core part of its operation. Saunders would like to buy it and start up on her own.

Bhs' annual results are due on 2 November. They are likely to show another strong performance for Green, who paid himself a £166m dividend last year.