Liquidators of BHS have accused lawyer Eddie Parladorio of helping to strip millions of pounds from the retailer before its collapse, as a High Court trial began in London.

The liquidators are seeking more than £10 million, alleging Parladorio breached his fiduciary duties by acting as a director “in all but name”.

They said he was a central figure in BHS’s management despite not being formally appointed as a director.

Parladorio was said to have worked full-time at BHS’s headquarters, attended 39 board meetings and received £32,000 plus VAT a month through service companies, more than the retailer’s chief executive.

The liquidators allege money was improperly taken through loans, fees and property deals, including £7 million from the sale of BHS’s headquarters and £600,000 in VAT from an Oxford Street property deal.

Parladorio denies the allegations. His barrister said he was an adviser, not a decision-maker, and described the case as based on a “slanted, distorted characterisation” of the evidence.

The case revisits the 2016 collapse of BHS, which followed its £1 sale to a group led by Dominic Chappell the previous year.

BHS’ failure led to the closure of its stores and the loss of 11,000 jobs. Its pension scheme had a £571 million deficit; former owner Sir Philip Green later agreed to pay £363 million towards it.

Chappell was sentenced to six years in prison in 2020 for tax evasion following the acquisition.

In 2024, the High Court ordered former BHS directors, including Chappell, to pay tens of millions of pounds over losses linked to the retailer’s collapse.

The trial against Parladorio is ongoing.