Dominic Chandler and Lennart Henningson ordered to pay £18m.
- High Court ruling finds Chandler and Henningson liable eight years post-collapse.
- Retail Acquisitions directors fined for wrongful trading and misfeasance.
- Chandler and Henningson failed to fulfill director duties, leading to insolvency.
- Future hearings to consider additional fines for Dominic Chappell.
Dominic Chandler and Lennart Henningson, former directors of Retail Acquisitions, have been ordered by the High Court to pay a substantial sum of £18 million. This ruling comes eight years after the collapse of British Home Stores (BHS), which was purchased by Retail Acquisitions from Philip Green for merely £1 in 2015.
The court has found Chandler and Henningson guilty of wrongful trading and misfeasance, mandating them to pay £6.5 million each. Additionally, they are required to jointly cover at least £5.6 million for misfeasance claims. Judge Mr Justice Leech underlined that the directors had neglected their duties. If they had acted in compliance with their responsibilities, BHS would have ceased trading and entered insolvent administration immediately.
Dominic Chappell, the founder of Retail Acquisitions who spearheaded the controversial £1 acquisition, is yet to face a separate hearing slated for this month. He might encounter fines potentially surpassing the amounts imposed on Chandler and Henningson. Notably, in 2020, Chappell was also directed to contribute £9.5 million to BHS pension schemes.
The case was initiated by BHS liquidator FRP Advisory on behalf of creditors, reflecting the continued fallout from the retailer’s collapse. The directors face an overarching prospect of further penalties, possibly up to £133.5 million, for wrongful trading related activities. This unfolding saga highlights the stringent regulatory environment and the severe repercussions of failing to meet fiduciary responsibilities within corporate leadership.
The High Court’s decision underscores the critical importance of upholding director duties to prevent substantial financial and legal repercussions.
