BHS administrators, Duff & Phelps, is said to have filed a High Court petition to wind up Retail Acquisitions, the chain’s former owner.
The Sunday Times reported the administrators are trying to gain control of the firm to analyse the flow of cash from BHS to Retail Acquisitions owner Dominic Chappell and his associates.
The administrator is said to be looking into a sum of £1.5m used by Retail Acquisitions to pay off the mortgage on the Surrey home owned by Chappell’s parents. Retail Acquisitions took a charge over the house in Sunbury-on-Thames as security for the loan but Chappell has since switched the charge to a property in Portugal, which potentially puts the Surrey home beyond the reach of the administrators, the newspaper reported.
Chappell’s associates are said to have borrowed £8.4m from BHS and £6m is understood to still be outstanding, although sources told the newspaper that the £2.4m repaid so far consisted of deductions for “management services”, rather than cash repayments.