BHS liquidators launch legal battle against Sir Philip Green’s Arcadia Group

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BHS

The liquidators of collapsed department store chain BHS have launched legal action against Sir Philip Green‘s Arcadia Group retail empire.

Minimal details have been made public about the case, except for papers recently filed in the High Court that show SHB Realisations — the holding company for BHS that is now under the control of restructuring firm FRP Advisory — named as the claimant while Arcadia Group is the defendant.

BHS was initially placed under the control of administrator Duff & Phelps when it collapsed in April 2016, before FRP Advisory was appointed as joint administrator in July.

In December, FRP was appointed liquidator of BHS, which meant it was handling the sale of the demised retailer’s assets to pay creditors.

READ MORE:  Green sold BHS to “prevent liability” of pension deficit

The legal case is the latest headache for Green, who in February settled the long-running and controversial dispute over who was responsible for the BHS pension scheme by paying £363 million to help cover the £571 million black hole that was recorded after the retailer collapsed.

Neither FRP Advisory nor Arcadia have released a statement regarding the latest court case.

Green’s Arcadia Group had owned BHS for 15 years before it was offloaded to former bankrupt Dominic Chappell in March 2015 for the now-infamous sum of £1.

The collapse of the high street chain 13 months after Arcadia sold it left 11,000 people out of work, and Green, Chappell and various City heavyweights were subsequently dragged before MPs during a parliamentary inquiry in to the demise of BHS.

In June, it was revealed the Taveta Investments, the parent company of Arcadia, had to make £130 million of writedowns last year, in part due to BHS‘s collapse.

Meanwhile, Chappell‘s company Retail Acquisitions Limited (RAL) was been put into liquidation in May.

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