Wednesday, December 13, 2017

BHS administrators call for takeover of Retail Acquisitions to track £1.5 million loan

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BHS administrators Duff and Phelps have issued a high court petition calling for the wind up of Retail Acquisitions, the company which acquired the department store chain prior to its collapse.

According to the Sunday Times, the administrators are hoping to gain control of the firm owned by Dominic Chappell which acquired BHS for £1 in 2015. 

It was announced last month that Chappell is under investigation by the Serious Fraud Office.

READ MORE: Former BHS owner Dominic Chappell under investigation by the SFO

The company is hoping to gain powers to investigate a £1.5 million sum that Chappell used to pay off the mortgage on his parents‘ house in Surrey. 

Retail Acquisitions took a charge over the property as security for the significant loan, butr Chappell has since switched this to a property in Portugal meaning the administrators are powerless to retrieve the money.

RELATED: Race cars, oil and debt: The career of BHS’ Dominic Chappell

Three-time bankrupt Chappell and his associates reportedly borrowed £8.4 million from BHS during his ownership, and it is thought that £6 million is yet to be repaid.

Chappell also owes half a million pounds in tax on his company Swiss Rock, which he put into liquidation meaning the tax bill could be completely written off.

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