New owner in storm over £1.5m loan
BHS boss Dominic Chappell took £1.5million out of the ailing retailer and loaned it to a company linked to his father Joseph, it has emerged.
And it is alleged that some of the money was used to pay off the mortgage on the family’s luxury home in Sunbury-on-Thames, Surrey.
The decision to take the cash out of BHS when it was fighting for survival is said to have angered fellow board members at Retail Acquisitions, the holding company which owns BHS. Discussions at one informal meeting became so heated that furniture is understood to have been broken.
Eddie Parladorio, a lawyer on the board, objected to the loan but was voted down by other directors, according to The Times. Mr Chappell said the loan had ‘board approval’ and part of it had already been repaid. His father lives in an impressive waterside home in Sunbury- on-Thames. The 78-year- old is director of a number of companies registered to the address, where Mr Chappell also used to live. Land Registry documents show the property was bought in July last year for £850,000 by JDM Island Properties Ltd – which is owned by Colin Sutton, a business associate of the Chappells.
The money was loaned to JDM by Retail Acquisitions Limited, the documents show.
But the property is worth much more than £850,000, raising questions over why it was bought so cheaply. It was previously listed for sale in June 2013 for £1.9million.
There was no answer at the property yesterday. But neighbours said the Chappell family had lived there for more than 40 years.
The house, set in 3.5 acres, has four reception rooms, four double bedrooms and four bathrooms. There is also a swimming pool, gym and sauna. Mr Chappell did not respond to requests for comment.