EXECUTIVES had discussions about the possibility of Mike Ashley's clothing firm USC going into administration 61 days before giving warehouse staff just 15 minutes notice of the risk to their jobs.

The revelation came as former drugs tsar Dr Keith Hellawell, chairman of Sports Direct International faced the Commons Scottish Affairs Select Committee over the financial meltdown of West Coast Capital (USC) Ltd.

It cost 79 permanent staff and 166 agency or zero-hour contract workers their posts at Dundonald, South Ayrshire.

Mr Hellawell admitted that it was "not unreasonable" to deduce that the administration started becoming an option in November 14, when Sports Direct which owned USC met with eventual joint-administrators Gallaghers and Duff and Phelps.

He admitted that some Sports Direct board members including himself were unaware of the administration discussions until the eleventh hour.

Asked if he could understand that staff at Dundonald would be upset at hearing that administration was considered as early as November 14, Mr Hellawell said: "I can see why they would be aggrieved."

Dr Hellawell said it had never been the firm's intention to close the warehouse, adding that a number of the workers involved had since found other jobs.

Administrators were appointed on January 13 and bought out by Republic.com, another Sports Direct business, the same day as a pre-package administration sale for £1.65 million. Staff received a letter the following day stating that the employees at the Olympic Business Park would be at risk of redundancy.

Administrators said last month that USC owed creditors £15.2m.

"Even when there were discussions, there was no decision by the board to go into administration, " said Mr Hellawell. "Why would you tell staff, that we have these problems, we perhaps might do this, we might go into administration, we might go out of business, but we might not. That would create all sorts of problems within the workforce and also problems clearly with the suppliers."

It has been claimed that Business Secretary Vince Cable was not given advance notice of the redundancies. Employers have to notify the Secretary of State at least 30 days before dismissals take effect if 20 or more employees are to be made redundant.

Failure to do so can be a criminal offence under Section 194 of the Trade Union and Labour Relations (Consolidation) Act and those found guilty can be, if convicted, liable to a fine of up to £5,000.

Under the same act, where an employer proposes to make 20 or more employees at one establishment redundant within a period of 90 days or less, it is also required to consult with appropriate representatives of the affected employees.

Consultation must begin in good time, and at least 45 days before the first dismissal takes effect in the case of 100 or more dismissals, or at least 30 days in all other cases.

Asked if he accepted the law had been broken over consultation periods, Mr Hellawell said: "Certainly our legal advice is that that is not the case. That we did not break the law."

Mr Hellawell said he did not think the Sports Direct chief executive Dave Forsey, who is also a director of Rangers Retail, had kept members of the board "in the dark" over the administration discussions but admitted he might have done things differently.

"I think he was doing what he felt was best in the interests of the business and acting with due diligence in doing what was his responsibility, " he said. "His responsibility and his task was to keep that business alive, to keep it afloat.

"What he did with hindsight, you could perhaps say, could have been done in a different way, but I don't believe he was misleading the board on purpose or for any alterior motive."

He added: "The fact he clearly spoke to administrators I think is good business practice."

He initially said he did not think there was a need for board members to be informed, but later agreed that "in hindsight that would have been helpful".

And while admitting that it was the threat of fashion brand Diesel pulling out that had acted as a catalyst for USC's demise, he also revealed that the retailer's relationship with the Dundonald warehouse landlord had "broken down" and the lease was to expire within a year - both of which led to a "business decision" for closure.

Simon Reevell MP said that Sports Direct's attempts to negotiate with suppliers and the warehouse landlord by withholding payments "sounds like some sort of backstreet outfit".

Mr Hellawell said he would ask "searching questions" of management over the tactic.

The Sports Direct chairman, who appeared instead of the company founder, also insisted Mr Ashley had "never refused" to attend, and would be prepared to meet MPs.