Dominic Chappell has been ordered to repay at least £50m following the BHS collapse in 2016.
- The High Court found Chappell attempted to “plunder” BHS after acquiring it for £1 from Sir Phillip Green.
- Chappell purchased BHS without sustainable financial backing, leading to detrimental financial strategies.
- He faces charges including wrongful trading and breach of fiduciary duty, accumulating £50m in damages.
- Previous BHS directors were also deemed liable for significant amounts, highlighting widespread mismanagement.
The High Court has mandated Dominic Chappell to pay a minimum of £50 million due to losses associated with the collapse of BHS in 2016. This comes after a ruling that identified Chappell’s actions as an attempt to “plunder” the retailer following his acquisition of the company from Sir Phillip Green for the nominal sum of £1 in 2015.
Mr Justice Leech, overseeing the case, remarked that Chappell purchased BHS without a viable working capital facility or any real prospect of securing one. Consequently, he resorted to a degenerative strategy reliant on costly loans to maintain operations. The judge further stated that in his view, Chappell should be accountable for 50% of the financial losses incurred.
Chappell has been specifically ordered to pay £21.5 million for wrongful trading and £17.5 million for breach of fiduciary duty, including additional costs and interest, culminating in total liabilities of at least £50 million. Additionally, he will face a yet-to-be-determined payment related to a claim of misfeasance trading.
This High Court decision follows a similar judgment earlier in the month when former directors Dominic Chandler and Lennart Henningson were also ordered to pay in excess of £18 million. Their charges mirrored those of Chappell, pinpointing their involvement in wrongful trading and misfeasance.
The case was brought forth by BHS liquidator, FRP Advisory, acting on behalf of the creditors. The outcome of these proceedings underscores a broader narrative of financial mismanagement within the BHS leadership prior to its collapse.
The High Court rulings emphasise the severe financial mismanagement that led to the collapse of BHS.
