Despite a strong first quarter Greggs was overshadowed in this morning’s papers by the ongoing reporting on BHS.

Total sales climbed 5.7% and like-for-like sales rose 3.7% at Greggs, though this was significantly down from last year’s 6% like-for-like growth. The Financial Times notes the chain was boosted by salads and flat whites but the business acknowledged that “softer” trading conditions had weighed on its performance. The paper’s Lex column said the more upmarket menu hinted at the adaptability of the business. “Howay pet! Flat white coffees and teriyaki chicken salads now sit alongside pasties and sausage rolls at Greggs, the Newcastle-based bakery chain.”

The Telegraph reports that the BHS collapse could cost pensions lifeboat £300m. The head of the UK’s Pensions Regulator admitted in front of MPs the authority was concerned about BHS four years ago but decided the retailer did not meet the risk thresholds to launch an investigation, the paper writes. The FT adds that the regulator had spent more than a year discussing BHS’s “very atypical” 23-year plan to close its pension deficit when they learnt “in the newspapers” that Sir Philip Green had sold the chain for £1, the parliamentary committee heard. The watchdog says it would have got provisions for pension scheme if it had known about sale to Dominic Chappell, The Guardian writes. Nils Pratley adds: “Pensions watchdog faces its own BHS deficit … in credibility.” And Alex Brummer in The Mail says: “Sir Philip Green makes tactical mistake by lobbing grenade at MP Frank Field.”

HMV has moved ahead of Tesco as second biggest entertainment retailer, with a rise in sales of music, DVDs and games over the last quarter its best performance since it went into administration (The Guardian).

Tesco has struck a wholesale deal in Spain with local department store El Corte Ingles, according to The Guardian. The supermarket will sell teas, biscuits and cereals in the store and in return will expand a trial of El Corte Ingles products in its stores including sherry vinegar, sliced meats and extra virgin olive oil.

Farmers have endured significant financial hardship because of “unacceptable” delays by the British government in paying them money owed under the EU’s Common Agricultural Policy, according to MPs (The FT).

US doughnut company Krispy Kreme is to be taken private by German conglomerate JAB Holding in a deal worth $1.35bn (The Times).

Pizza Hut is planning to create more than 3,000 jobs as it eyes £40m expansion in the UK and Ireland over the next four years (The Telegraph).