High Court Rules Against Former Owner for Wrongful Trading and Breach of Fiduciary Duty

  • Dominic Chappell ordered to pay £50m over BHS collapse
  • High Court judge rules against Chappell for wrongful trading, misfeasance, and breach of fiduciary duty
  • Chappell acquired BHS for £1 from Phillip Green
  • Justice Leech states Chappell had no plan to secure working capital
  • Chappell sentenced to six years in prison for tax evasion in 2020
  • Liquidators argue company should have stopped trading earlier to minimize creditor losses

Former BHS owner Dominic Chappell has been ordered by the High Court to pay at least £50m to cover losses incurred before the high street chain’s collapse. The judge found that Chappell, who acquired the business for just £1 from Phillip Green, is liable for payments demanded by BHS liquidators. Liquidators sued Chappell for wrongful trading, misfeasance, and breach of fiduciary duty, stating he had no realistic plan to secure working capital when acquiring the company. Justice Leech declared that Chappell took the chance to ‘plunder the BHS Group whenever possible.’ The order includes £21.5m for wrongful trading, £17.5m for breach of fiduciary duty and additional costs and interest, totaling at least £50m. A separate payment for misfeasance trading claim is pending approval. Liquidators argue that the company should have ceased operations earlier to minimize creditor losses.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about a court ruling involving Dominic Chappell and BHS. It reports on the judge’s decision and the amounts involved in the case without any sensationalism or personal opinions.
Noise Level: 3
Noise Justification: The article provides relevant information about a court ruling and the financial consequences of Dominic Chappell’s actions related to BHS. It is not overly noisy or misleading but does not offer much analysis or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: BHS, Dominic Chappell, Phillip Green
Financial Rating Justification: This article discusses a court ruling that requires Dominic Chappell to pay £50m for the losses incurred by BHS prior to its collapse. This has financial relevance as it involves a significant amount of money and impacts the involved companies and their finances.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk