It would appear that the BHS debacle which began in 2016 is nowhere near its conclusion. Dominic

Chappell is due to appear at Brighton Magistrates Court on September 20 to face three charges of neglecting or refusing to provide information and documents without reasonable excuse.

Chappell, owner of Retail Acquisitions, which was subject to a winding up order on June 5, 2017, bought the 88-year old retail giant from Phillip Green for £1 in 2015. Despite any efforts which may have been made to revive the company, the last store closed on 28 August 2016. The collapse of the British retail institution created 11,000 redundancies and a pension deficit of £571m affecting 20,000 workers.

The charges are being brought by the Pensions Regulator who called upon Sir Phillip Green and Chappell to provide information relevant to their investigation into the collapse of BHS. The Regulator negotiated a reduced settlement with Green in February resulting in him having to pay £363m into the BHS pension scheme. All legal action against him thereafter ceased. Chappell, on the other hand, is being accused of failing to cooperate with the inquiry when asked to do so.

Section 72 of The Pensions Act 2004 makes it a legal requirement for certain specified individuals to provide information or produce documents when requested to do so by the Pensions Regulator. Section 77 of the 2004 Act makes it a criminal offence to neglect or refuse to do so without reasonable excuse, giving the body the power to take action through the courts. A conviction of such a charge at summary level is punishable by a fine of up to £5000. Any conviction of course may be subject to appeal.

Meanwhile, the Insolvency Service, the government department that investigates financial wrongdoing, is also investigating Mr Chappell. It has the power to disqualify anyone from being a company director in the UK.

The boss of the Insolvency Service, Sarah Albon, said in February that the investigation into BHS’s collapse could stretch to 2019 and that it had so far received 37 million records relating to its investigation. 

The public interest in this case is wide reaching, which is not surprising given that 20,000 UK citizens have been cheated out of their future income in retirement and 11,000 of the nationwide workforce lost their jobs in one go.

Despite the focus now being on Mr Chappell, it is not lost on some that there is an issue of fairness. The pensions black hole did not happen overnight and Mr Chappell only owned the company for 13 months before its collapse.

“Frank Field MP, who led a parliamentary inquiry into the demise of BHS, said: “Why was Sir Philip Green allowed to get away with an inadequate settlement, in which pensions have been cut, yet Dominic Chappell is going to be sued?” Adding, “I’ll be consulting the House of Commons’ lawyers on when I can begin to unlock that puzzle, so that Mr Chappell has a fair trial".

It would appear that the Pensions Regulator will be looking to Mr Chappell to plug that deficit but in the meantime will be exerting its power on him through the courts. It was reported in the press that Mr Chappell’s spokesman stated the former owner was ""working very hard with the liquidator to recover and preserve nearly £50m, which will benefit the creditors and BHS pensioners".

This prosecution comes down to the Pensions Regulator and all bodies concerned exerting what powers they have to put the BHS workers in the position they would have been if this pension black hole had not occurred, thus exposing the financial incompetency of those in charge over the last fifteen years. This saga is also being played out under the watchful eye of the GMB union who are determined to protect and uphold the rights of the workers affected.

Mr Chappell clearly does not have the funds to solve the problem and despite pledging to contribute to fixing it, refuses to accept any responsibility for the shortfall. Mr Chappell, it seems, is in the unfortunate position of not having the financial capabilities of Green. Had he the money to plug the pensions gap, it is unlikely he would find himself subject to any criminal prosecution. Given the maximum fine of £5000, any monetary penalty, if convicted, is unlikely to have much impact on him. However, the presence of such a conviction on his criminal record will certainly be of interest to the Insolvency Regulator and indeed the Serious Fraud office. Both bodies will be watching closely to decide what action, if any, they will be taking towards the former owner.

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