Dominic Chappell, founder of Retail Acquisitions, which bought BHS for £1 in 2015, has been ordered to pay £9.5m into its pension schemes.
Chappell was served with the demand by The Pensions Regulator (TPR) after losing an appeal process against the payment.
The TPR concluded that a series of acts were “materially detrimental” to the pension schemes. These included “the acquisition of BHS, management decisions of the company, the appointment of inexperienced board members, the implementation of an inadequate business plan and the way money was extracted and distributed to Mr Chappell, advisers, company directors and family members”.
The collapse of BHS in 2016 resulted in 11,000 people losing their jobs, and left a gaping pension deficit. Sir Philip Green, who owned BHS for 15 years before selling it to Chappell, agreed to a voluntary contribution of £363m in February 2017.
In November, former bankrupt Chappell was banned from running a company for 10 years by the Insolvency Service. It followed the liquidation of Chappell’s business Retail Acquisitions in May as part of his battle with BHS administrator Duff & Phelps.