Former BHS owner Sir Philip Green’s knighthood is being reviewed in the aftermath of the department store chain’s collapse.

The Cabinet Office has appeared to confirm that it is assessing whether Green should be stripped of the honour after an extract from a letter was posted on social media.

Labour MP Jim McMahon posted a photo of a letter from the department on Twitter after he demanded action against the Arcadia tycoon for his role in the demise of the department store business.

As revealed by, BHS tumbled into administration earlier this year, just 12 months after Green sold the retailer to Dominic Chappell’s Retail Acquisitions consortium for a nominal £1.

The 88-year-old chain collapsed with a £571m pension deficit – a black hole that MP Frank Field has urged the Green family to plug.

And Green has faced widespread criticism from other MPs who have demanded action against the billionaire.

The letter posted on social media by McMahon spelled out the process for removing a knighthood.

Civil servants are required to produce a recommendation before the Honours Forfeiture Committee considers a case.

Following that step, Prime Minister Theresa May and the Queen would then be asked to agree the decision.

The extract from the Cabinet Officer letter read: “A recommendation to cancel an honour is usually prepared by the Department which drew up the original citation. The Forfeiture Committee considers each case on its merits and submits its recommendation through the Prime Minister to the Sovereign.

“If the Sovereign approves a recommendation to revoke an honour, a notice of forfeiture is placed in the London Gazette.

“I hope you will understand that I cannot comment on the particular circumstances of Sir Philip, but I can assure you that the case is being reviewed.”

The joint Business, Innovation and Skills and Work and Pensions Committee will reveal the findings of its inquiry into BHS on Monday following a series of parliamentary hearings.

Green has defended his ownership of the business and the decision to sell the chain to Chappell in March 2015.