Former BHS boss Chappell ordered to pay £9.5m into pension schemes
FORMER BHS owner Dominic Chappell yesterday failed in his bid to overturn an order to pay £9.5million into the defunct store’s pension schemes.
Chappell, 53, bought the high street chain from billionaire Sir Philip Green for just £1 in 2015.
But the company crashed 13 months later, leaving a pensions black hole of up to £571million, and 11,000 workers without jobs.
The Pensions Regulator immediately moved to protect the pensions of 19,000 members and made three requests for information under a Section 72 order.
The regulator managed to secure a £363million cash settlement with Sir Philip in order to rescue the scheme in 2017. But Chappell, a former bankrupt, was accused of failing to hand over vital documents as they sought to stabilise the pension fund.
The regulator took him to court, charged with three counts of neglecting or refusing to provide documents, without reasonable excuse, contrary to the Pensions Act.
Crusade
The former racing driver, from Blandford Forum in Dorset, claimed he was being made a “scapegoat” for the failure of the high street giant and said that he wished he had never bought it.
Chappell said during his 13 months at the helm of BHS he had contributed £4.5million to the pension fund.
However, he was convicted of failing to hand over documents to the regulator and ordered to pay a £50,000 fine and £37,000 in court costs.
In January 2018, Chappell was handed a bill of almost £10million to make up the BHS pensions shortfall.
He decided to fight the ruling and appealed the decision to the Upper Tribunal.
But now the regulator has secured the further £9.5million towards the
BHS pension fund from Chappell after his appeal was rejected.
Nicola Parish, the regulator’s executive director of frontline regulation, said: “We are pleased that the decision to issue two contribution notices to pay money into the BHS pension schemes stands.”
Last night, former staff members welcomed the news.
One ex-shop worker said: “It has been a long, drawn-out affair but I’m pleased Chappell has been told he has to make up the shortfall.
“For many workers, who spent decades paying into the company pension fund, it will be a weight off their shoulders to know their pensions are safe.”
The British Home Stores department store chain collapsed in 2016, having been a high street staple since 1928.
The Daily Express is continuing to rally behind traditional retail stores with our Save Our High Streets crusade.