Dominic Chappell: Serial bankrupt who bought BHS for £1 ordered to pay £9.5m
Written by News on 14/01/2020
The businessman who bought BHS from Sir Philip Green for £1 – only for the chain to collapse a year later – has been ordered to pay £9.5m to its pension schemes.
Dominic Chappell, a serial bankrupt, was served with the demand by The Pensions Regulator (TPR) following the conclusion of an appeals process.
He had challenged the findings of a panel that he hand money to the funds on the basis that a series of acts under his watch contributed to material detriment to the schemes.
BHS collapsed with the loss of 11,000 jobs and a gaping pension deficit in 2016.
Topshop tycoon Sir Philip later agreed a deal with regulators to hand over £363m – covering a majority of the pension black hole.
Chappell, who was banned by the Insolvency Service last November from serving as a company director for 10 years, had sought a hearing in a bid to strike out the pension contribution demand – first issued a year ago.
TPR said it had been struck out following a lengthy legal process and The Pension Protection Fund, which assumed responsibility for the two BHS funds after its collapse, was now actively seeking payment.
The regulator’s determination included concern over the acquisition of BHS by Chappell’s company, Retail Acquisitions.
It also listed “management decisions of the company, the appointment of inexperienced board members, the implementation of an inadequate business plan and the way money was extracted and distributed to Chappell, advisers, company directors and family members”.
Chappell has also previously lost an appeal against a conviction for failing to provide information to TPR.
Nicola Parish, an executive director at TPR, said: “We are pleased that the decision to issue two Contribution Notices to pay money into the BHS pension schemes stands.
“This case illustrates how TPR is willing to pursue a case through the courts to seek redress for pension savers.
“It illustrates the situations our anti-avoidance powers were designed to meet and which allow us to protect the retirement incomes that savers deserve.”
Sky News was attempting to contact Chappell for comment.
(c) Sky News 2020: Dominic Chappell: Serial bankrupt who bought BHS for £1 ordered to pay £9.5m
