Following new evidence, MPs are investigating further into the collapse of BHS as new questions around the controversial sale of the business for £1 have been raised.

Having already provided evidence to MPs, Goldman Sachs banker Anthony Gutman said he had advised Sir Philip Green that BHS buyer Dominic Chappell had previously been declared bankrupt and warned that Mr Chappell had little retail experience.

A log that was provided by a Goldman Sachs banker showed that after the Arcadia group was advised of Mr Chappell’s bankruptcy the company said it had "no interest in proceeding with the sale".

In an exchange between Sir Philip and Paul Budge, Arcadia’s finance director, Sir Philip said he would only consider the deal if Swiss Rock, which later became Retail Acquisitions, was "putting in cash/equity themselves and had a prominent retailer".

In January, Mr Budge told Mr Gutman that Sir Philip would not do a deal on the amounts that were presented and the retail front person "was not credible", even though Mr Chappell was still serious about his proposal.

In February, Mr Gutman advised Arcadia that even though the lender to Mr Chappell’s business seemed credible, it had not conducted due diligence and there was risk attaching to the Swiss Rock proposal.

Chair of the Work and Pensions committee, Frank Field, said: "The full depth of the extraordinary circumstances of the sale of BHS to Retail Acquisitions are now beginning to come to light, especially with this remarkable record of the to-ings and fro-ings of the deal to sell BHS to Dominic Chappell provided by the unpaid advisers at Goldman Sachs.

"An emerging theme of this inquiry is witnesses seeking to correct and clarify evidence they have given. What we are learning now throws some of the accounts we have heard so far further into question, and opens a series of new lines of inquiry that we are pursuing in advance of testimony from the lead actors in this affair over the next two weeks."

Mr Chappell will be giving evidence before another joint hearing of the two select committees on the 8th June, as well as Robin Saunders, the Texan banker and close confidante of Sir Philip Green within the next two weeks.