Dominic Chappell ordered to pay £50m over BHS collapse
Liquidators sued Chappell arguing that the company should have stopped trading earlier to minimise creditor losses
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Former owner of BHS Dominic Chappell has been ordered to pay at least £50m to cover the losses incurred by the high street chain prior to its collapse, according to the Financial Times.
A High Court judge has ruled that Chappell, who acquired the business for £1 from Phillip Green, is liable for payments demanded by BHS liquidators.
The liquidators sued Chappell for wrongful trading, misfeasance, and breach of fiduciary duty.
According to the FT, Justice Leech stated that Chappell had no realistic plan to secure working capital when he acquired BHS.
He stated that Chappell, who was sentenced to six years in prison for tax evasion in 2020, took the chance to “plunder the BHS Group whenever possible.”
The judge declared that Chappell “should make the payments” outlined in a draft order at a hearing on Tuesday.
The order includes £21.5m for wrongful trading, £17.5m for breach of fiduciary duty and additional costs and interest, bringing the total to at least £50m.
Chappell will also be required to make a separate payment for a misfeasance trading claim, with the amount to be decided later.
As a result of this the order is now awaiting final approval from the judge.
Liquidators sued Chappell arguing that the company should have stopped trading earlier to minimise creditor losses.
