Sir Philip Green could try and claw back millions from the man he sold BHS to for £1

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May 17, 2017 8:51 AM

Dominic Chappell's Retail Acquisitions Limited was put into liquidation earlier this month.

Former BHS owner Dominic Chappell.

LONDON — A High Court judgment has paved the way for Sir Philip Green to pursue the former owner of bankrupt BHS for millions in unpaid loans.

Dominic Chappell could be pursued by Sir Philip and other BHS creditors, the Guardian reports, after Retail Acquisitions Limited (RAL) went in to liquidation earlier this month.

Chappell, a former racing driver who has been declared bankrupt twice, bought department store BHS from Sir Philip Green for £1 in 2015, using RAL as the acquisition vehicle.

BHS collapsed last April, but not before Chappell had made £2.6 million from it. RAL could have been paid as much as £17 million by BHS.

Details of a High Court ruling on RAL's liquidation were published by the High Court on Tuesday, shedding light on the money that the company owed. The details could pave the way for creditors to pursue Chappell, the sole shareholder and director of RAL, for money owed.

Sir Philip's Arcadia Group, which owns Topshop and Dorothy Perkins, is owed a £3.5 million loan lent to RAL, the Guardian reports. RAL also owes around £6 million to BHS, which administrators for the department store are seeking to recover.

A spokesperson for Sir Philip declined to comment.

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