Former BHS owner Dominic Chappell has been banned from running a company for 10 years, following a series of “reckless” and “unexplained” financial transactions.
The Insolvency Service has issued the following disqualification: “During the [10-year] period, [Chappell] cannot be involved, directly or indirectly, in the promotion, formation or management of a company without the permission of the court.”
It comes after a High Court hearing in October, which revealed that Chappell “wrongfully” diverted £1.5m of funds from BHS to a Sweden-based company just one day after the board – of which he was director – had discussed the “potential” appointment of an administrator, the Insolvency Service said.
He also came under fire for transferring more than £1m to Retail Acquisitions Limited – of which he was also director – that “should have been retained by BHS and BHS Properties.”
Investigators were also unable to establish the circumstances behind a £2m payment from BHS to Retail Acquisitions, as well as payments in excess of £1m made by Retail Acquisitions directly to Chappell.
Claire Entwistle, assistant director for the Insolvency Service, said: “Both Dominic and his father [who has also been banned for five years] abused their responsibilities as directors. Not only did they carry out reckless financial transactions, but they failed to maintain adequate company records – a basic requirement for any responsible director.
”The courts have recognised the severity of their actions and the bans handed down will seriously curtail their opportunities to manage companies.”