Directors involved in BHS collapse must pay £18.3m compensation

The High Court has ruled that two directors of collapsed retailer BHS must pay £18,364,448 in compensation to creditors to stop corporate risk-taking

Lennart Henningson, Dominic Chandler and former CEO Dominic Chappell, were directors of BHS Group and its subsidiaries, and were charged with claims of wrongful trading, trading misfeasance and individual misfeasance in a case brought by the joint liquidators from FRP Advisory.

Chappell was the first respondent but did not take part in the trial after being granted a six-month adjournment. As a result, a further trial will follow and this ruling is not binding on Chappell.

Henningson and Chandler were each ordered to pay £6.5m for wrongful trading as a contribution to the companies’ creditors.

Judge Justice Leech said: ‘I consider that in the exercise of my discretion it is proper to order Mr Henningson and Mr Chandler each to contribute on a several basis £6.5 million to the companies’ assets and I will make a declaration to that effect.’

Whil

Your free features:

  • Breaking news and expert analysis
  • Customisable daily newsletters
  • Six free CPD learning modules each year
  • Personalised CPD tracker
  • Top 75 Firms league tables
  • Regulatory changes
  • Hardman’s Tax Data

Sign up to Business & Accountancy Daily

Related Articles
Subscribe