BHS ex-director Dominic Chappell should pay £50m over collapse | EUROtoday

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Ex-BHS director Dominic Chappell has been ordered to pay £50m to cowl losses the agency incurred earlier than its collapse.

A High Court decide stated Mr Chappell tried to “plunder the BHS Group whenever possible” after he bought the company for £1 from Sir Phillip Green in 2015.

The ex-director was imprisoned for six years in 2020 over tax evasion.

He has since been sued by BHS liquidators FRP Advisory.

At a hearing on Tuesday, Mr Justice Leech said Mr Chappell never had a realistic plan to secure capital for the company when he acquired it.

The judge also said Mr Chappell “should make the payments” outlined, which incorporates £21.5m for wrongful buying and selling.

He must also pay £17.5m for breach of fiduciary duty and other additional costs.

This takes the total to over £50m but Mr Chappell still faces another fine over a misfeasance or wrongful trading claim.

The amount he has to pay for that will be determined at a later date.

Mr Chappell gave a hand written note to the judge saying he had no legal counsel “resulting from lack of funds” and raised well being and laptop entry issues.

Mr Chappell is a former racing driver and had no retail expertise when he purchased BHS for £1 in March 2015.

The agency made headlines when it fell into administration with a billion kilos value of buying and selling liabilities and pension money owed in 2016.

Just over a 12 months into the brand new possession the chain went underneath, leading to 11,000 job losses and a £571m pensions shortfall.

Sir Philip Green was closely criticised on the time for agreeing to the deal, and later agreed a £363m money settlement with the Pensions Regulator to plug the hole within the pension scheme.

Earlier this month, two former BHS administrators Lennart Henningson and Dominic Chandler had been ordered to pay no less than £18m to collectors over their position within the collapse of the retailer.

Robin Henry, accomplice and head of dispute decision at Collyer Bristow, stated: “The Court has clearly identified Chappell as the person who should take most of the blame for BHS’ losses.”

https://www.bbc.com/news/articles/cn007pd8vjxo