News
Raymond Doherty 6 Nov 2019 03:54pm

Ex-BHS boss Dominic Chappell banned for 10 years

The Insolvency Service has disqualified Dominic Chappell, the former owner of BHS, from being a director for 10 years

His father Joseph has also been given a five-year ban after an investigation into a number of financial dealings involving the retail chain BHS.

Dominic Chappell bought BHS for £1 from then-owner Sir Philip Green in 2015 before it fell into administration. He remained owner until it collapsed a year later.

The Insolvency Service probe found that while a director of BHS Limited, Chappell wrongfully diverted £1.5m of funds from BHS Limited to a company based in Sweden. The transaction took place one day after the potential appointment of an administrator for BHS Limited had been discussed by the board of directors.

He also transferred funds in excess of £1m to Retail Acquisitions Limited, a company he was also a director and 90% shareholder of at the time. The funds should have been retained by BHS and BHS Properties as proceeds from property sales in London’s Oxford Street and Sunderland respectively.

“Both Dominic and his father abused their responsibilities as directors. Not only did they carry out reckless financial transactions but they failed to maintain adequate company records – a basic requirement for any responsible director,” said Claire Entwistle, assistant director for the Insolvency Service.

“The courts have recognised the severity of their actions and the bans handed down will seriously curtail their opportunities to manage companies.”

Chappell had failed to comply with statutory obligations requiring him to provide information relating to the BHS Pension Schemes.

Joseph Chappell was disqualified for his role as director of Swiss Rock and three other companies, Capital Management Limited, Newport Management Limited and Base Technology.

This is not the end of Dominic Chappell's legal issues relating to BHS. He appeared at Southwark Crown Court last month for a plea hearing on three charges of cheating the public revenue. He pleaded not guilty to all three, according to reports. Prosecutors previously alleged that the total sum owed to HMRC was approximately £500,000.

Topics