Dominic Chappell, the owner of Retail Acquisitions, held talks to purchase Austin Reed Group as BHS headed for collapse.
Alan Jacobs, the founder of investment firm Jacobs Capital, has submitted evidence to MPs that show Chappell held talks, which later fell apart as it became clear he “did not have access to sufficient funds”.
He said the talks took place when BHS was working on slashing its rent bill through a company voluntary arrangement in March this year.
Jacobs was a non-executive director of Austin Reed, which entered administration on April 26, the day after BHS went into administration.
In separate evidence to MPs, Chappell admitted he pocketed £2.63m from Retail Acquisitions and BHS during the period he controlled the retailer, including £1.6m of payments to a company he controlled called Swiss Rock, £414,000 in “pre-agreed fees” and £650,000 in salary payments.
Dominic Chappell evidence
The £1.5m loan from Retail Acquisitions against his father’s home is also outstanding in full.