{"id":81818,"date":"2024-06-26T16:31:09","date_gmt":"2024-06-26T16:31:09","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/06\/26\/bhs-ex-director-dominic-chappell-must-pay-50m-over-collapse\/"},"modified":"2024-06-26T16:31:09","modified_gmt":"2024-06-26T16:31:09","slug":"bhs-ex-director-dominic-chappell-must-pay-50m-over-collapse","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/06\/26\/bhs-ex-director-dominic-chappell-must-pay-50m-over-collapse\/","title":{"rendered":"BHS ex-director Dominic Chappell must pay \u00a350m over collapse"},"content":{"rendered":"
\"BHS<\/div>


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Ex-BHS director Dominic Chappell has been ordered to pay \u00a350m to cover losses the firm incurred before its collapse.<\/p>\n

A High Court judge said Mr Chappell tried to \u201cplunder the BHS Group whenever possible” after he bought the company for \u00a31 from Sir Phillip Green in 2015.<\/p>\n

The ex-director was imprisoned for six years in 2020 over tax evasion.<\/p>\n

He has since been sued by BHS liquidators FRP Advisory.<\/p>\n<\/div>\n

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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.<\/p>\n

The judge also said Mr Chappell \u201cshould make the payments\u201d outlined, which includes \u00a321.5m for wrongful trading.<\/p>\n

He must also pay \u00a317.5m for breach of fiduciary duty and other additional costs.<\/p>\n

This takes the total to over \u00a350m but Mr Chappell still faces another fine over a misfeasance or wrongful trading claim.<\/p>\n

The amount he has to pay for that will be determined at a later date.<\/p>\n

Mr Chappell gave a hand written note to the judge saying he had no legal counsel “due to lack of funds\u201d and raised health and computer access concerns.<\/p>\n

Mr Chappell is a former racing driver and had no retail experience when he bought BHS for \u00a31 in March 2015.<\/p>\n

The firm made headlines when it fell into administration with a billion pounds worth of trading liabilities and pension debts in 2016.<\/p>\n

Just over a year into the new ownership the chain went under, resulting in 11,000 job losses and a \u00a3571m pensions shortfall.<\/p>\n

Sir Philip Green was heavily criticised at the time for agreeing to the deal, and later agreed a \u00a3363m cash settlement with the Pensions Regulator to plug the gap in the pension scheme.<\/p>\n

Earlier this month, two former BHS directors Lennart Henningson and Dominic Chandler were ordered to pay at least \u00a318m to creditors over their role in the collapse of the retailer.<\/p>\n

Robin Henry, partner and head of dispute resolution at Collyer Bristow, said: “The Court has clearly identified Chappell as the person who should take most of the blame for BHS\u2019 losses.”<\/p>\n<\/div>\n


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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Ex-BHS director Dominic Chappell has been ordered to pay \u00a350m to cover losses the firm incurred before its collapse. A High Court judge said Mr Chappell tried to \u201cplunder the BHS Group whenever possible” after he bought the company for \u00a31 from Sir Phillip Green in 2015. The ex-director was imprisoned for six years in […]<\/p>\n","protected":false},"author":2,"featured_media":81819,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/ichef.bbci.co.uk\/news\/1024\/branded_news\/ab19\/live\/ff98c9e0-339d-11ef-8699-9f505da6f2b0.jpg","fifu_image_alt":"","footnotes":""},"categories":[604],"tags":[72621,65602,72620,3045,22132,72619,795],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/81818"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=81818"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/81818\/revisions"}],"predecessor-version":[{"id":81820,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/81818\/revisions\/81820"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/81819"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=81818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=81818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=81818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}