Chappell ordered to pay £9.5m into BHS schemes

The Pensions Regulator had issued two contribution notices for a total of £9,542,985 in January 2018, after considering that a series of acts were materially detrimental to the pension schemes.

These included the acquisition of BHS, management decisions of the company, the appointment of inexperienced board members, the implementation of an inadequate business plan, and the way money was extracted and distributed to Mr Chappell, advisers, company directors and family members.

He referred this decision to the Upper Tribunal, which dismissed his claim in July. This means the panel decision stands and contribution notices were subsequently issued in August.

The Pension Protection Fund is responsible for obtaining the money from Mr Chappell for the benefit of the schemes.

Nicola Parish, TPR’s executive director of frontline regulation, noted that TPR is pleased the decision to issue two contribution notices to pay money into the BHS pension schemes stands.

She said: “This case illustrates how TPR is willing to pursue a case through the courts to seek redress for pension savers. It illustrates the situations our anti-avoidance powers were designed to meet, and which allow us to protect the retirement incomes that savers deserve.”

The thrice bankrupt Mr Chappell bought BHS from billionaire Sir Philip Green for just £1 in March 2015. But just days later, TPR demanded hundreds of documents in relation to the £571m pension blackhole at the high street chain.

BHS went into administration in April 2016, putting workers’ retirement nest eggs at risk, and TPR had been investigating the case since. 

In the end, a £363m settlement with Sir Philip was reached to fund a new, independent pension scheme for 19,000 former BHS workers.