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Sunday, July 5, 2020

BHS: Dominic Chappell has ordered to pay £ 9.5 million into pension schemes

Dominic ChappellCopyright of the image
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Businessman Dominic Chappell was ordered to pay £ 9.5 million into BHS pension schemes after losing an appeal.

Chappell purchased the High Street chain from Sir Philip Green for £ 1 before closing in 2016.

The Pension Authority (TPR) had issued Chappell with two notices of contribution for the money, and his appeal against payments was unsuccessful.

Nicola Parish of TPR said the case showed how the watchdog would use the courts to help pension savers.

“It illustrates the situations in which our anti-circumvention powers are designed to meet and which allow us to protect the retirement income that savers deserve,” he said.

He added that the decision meant that the BHS pension scandal was “coming to an end”, almost four years after the company closed.

The collapse of the BHS cost 11,000 people the job and left a pension deficit of over £ 570 million.

In 2018, Sir Philip agreed to pay £ 363 million in cash into the company’s pension schemes to keep them out of the Pension Protection Fund.

Sir Philip owned BHS for 15 years before selling it to Mr Chappell.

When TPR published the initial notice against mr. Chappell concluded that a number of acts were “materially harmful” to pension schemes.

He said they included:

  • the acquisition of BHS
  • the appointment of inexperienced board members
  • an inadequate business plan
  • and how the money was mined and distributed to Chappell, consultants, company directors and family members.

Last November, Chappell, a former bankrupt, was banned from managing a company for 10 years by the Insolvency Service.

By the end of the year, he will face a £ 500,000 tax fraud charge trial, which he denies.

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