Dominic Chappell, the former owner of BHS at the time of the retailer’s collapse, is said to owe more than £500,000 to HMRC which has begun legal proceedings against him
Earlier this month HMRC issued a winding up order for Swiss Rock Limited, the business through which Chappell bought BHS. However, the company is now in liquidation.
According to documents drawn up by Chappell and liquidators David Rubin & Partners, Swiss Rock owes £365,000 in VAT and £196,306 in corporation tax, the Guardian reports.
The company is also listed as owing £56,000 in ‘trade and expense’ and £15,000 to Chappell from a loan account. It has debts with Cornhill Capital, the City firm that advised Chappell before his purchase of BHS, but the amount is recorded as disputed.
HMRC said it did not comment on individual cases, but said its aim is to ‘efficiently collect the debts due and to prevent things deteriorating further’.
Chappell, a former racing driver and twice bankrupt, who had no retail experience, took over BHS in March 2015 when he paid former owner Sir Philip Green £1 for the business.
When the company collapsed a little over a year later, it became the subject of a joint BIS and DWP select committee inquiry which castigated both Chappell and Green over their behaviour.
The Insolvency Service and the Pensions Regulator are currently investigating Chappell, while the Serious Fraud Office (SFO) is considering launching a formal investigation.
