Pensions watchdog says Dominic Chappell knew BHS was insolvent when he bought it for £1
Dominic Chappell knew that BHS was insolvent when he bought it for just £1, the pensions watchdog has claimed.
It follows fresh revelations in June that the retailer may not have been solvent in 2015, despite being signed off as a going concern by accountants. The Financial Reporting Council (FRC) has already fined PwC a record £10m for failings in its audit.
The Pensions Regulator (TPR) is arguing that Chappell was aware of the state of the company when he acquired it from Sir Philip Green, according to Press Association. TPR allegation is part of its efforts to make Chappell pay £9.5m into the BHS pension pot.
The watchdog confirmed today that it issued two contribution notices to Chappell demanding a total of £9.5m between them in January. Chappell has appealed the decision, referring it to the Upper Tribunal.
“Our anti-avoidance action against Dominic Chappell continues," a spokesperson said.
Sir Philip Green has already contributed £363m towards the £571m hole in BHS's pension plan.
Dominic Chappell told City PM he had "a clear mandate that we would not have bought the business if it was insolvent".
Read more: PwC criticised for failure to spot BHS issues days before its sale for £1