High Court finds former BHS directors liable for substantial financial malfeasance.
- Directors Dominic Chandler and Lennart Henningson face fines totalling over £18m.
- The charges relate to wrongful trading and misfeasance as directors of Retail Acquisitions.
- BHS’s administration followed its £1 purchase by Retail Acquisitions from Philip Green in 2015.
- Further financial repercussions loom, with potential fines nearing £133.5m for misfeasance.
In a significant legal decision, former directors of BHS, Dominic Chandler and Lennart Henningson, have been ordered to pay over £18 million following a High Court ruling. The ruling stems from their involvement in wrongful trading and misfeasance.
As key figures in Retail Acquisitions, the company that purchased BHS for £1 from Philip Green in 2015, Chandler and Henningson are held responsible for failing in their directorial duties. If they had adhered to their responsibilities, the business would have entered insolvent administration sooner, potentially avoiding greater financial distress.
The court has mandated that Chandler and Henningson must individually pay £6.5 million for wrongful trading, while jointly covering an additional £5.6 million for misfeasance claims. This ruling highlights the severity of their financial misjudgments and legal responsibilities.
The founder of Retail Acquisitions, Dominic Chappell, will also face a separate hearing this month. Chappell had previously been instructed to contribute £9.5 million to BHS pension schemes, indicating ongoing scrutiny of his financial practices.
This case was initiated by FRP Advisory, the BHS liquidator, acting on behalf of creditors seeking compensation for the financial mismanagement that contributed to BHS’s collapse. The potential for further fines of up to £133.5 million looms, underscoring the immense scale of the directors’ alleged wrongdoing.
The court’s decision underscores the severe consequences of corporate mismanagement at the highest levels.
