Dominic Chappell has been put on trial by the Pensions Regulator over the collapse of BHS
The former owner of BHS was today found guilty of failing to provide vital documents to the pensions watchdog after he bought the chain from Sir Philip Green.
Dominic Chappell, 51, was described by his lawyer as being a ‘political scapegoat’ for the failure of high street chain and he added that the case against him is a ‘sham’ and a ‘show trial’.
He bought the chain from billionaire Sir Philip for just £1 back in 2015 but the company subsequently crashed just 13 months later leaving pensions black hole of around £571million.
He faced three charges of failing to provide investigators from The Pension Regulator (TPR) with vital documents and information to investigators and was today convicted following a trial.
But in closing speeches today Michael Levy, defending, told the court Chappell had been hung out to dry.
Mr Levy told the court: ‘This trial is a sham. It is show trial and it is political.’
He said the case was nothing more than an attempt by the Pension Regulator to make up for 15 years of negligence.
He said their neglect to tackle BHS while it was under the tenure of Sir Philip Green resulted in a ‘pension blackhole of gargantuan proportions.’
Chappell bought the high street chain from Sir Philip Green for just £1 back in 2015
He said: ‘It is a meaningless attempt by them [The Pension Regulator] to make up for 15 years of negligence and Mr Chappell is nothing more than a scapegoat for that.
‘He is in fact the man who tried to save BHS. And it is not too dramatic to say he now sits alone in the court dock on a cold January morning while those actually responsible tiptoe across the sun-kissed sands of the Caribbean.’
The sensational claims came on the final day of the four day trial at Brighton Magistrates Court.
Up to 11,000 people lost their jobs with the collapse of the high street chain and the pensions of 19,000 members were thrown put in jeopardy – though Sir Philip later agreed to pay £363 million towards the pension deficit.
The Pensions Regulator is understood to be seeking around £10million from Chappell in relation to the BHS pension fund.
Chappell was accused of failing to give information to The Pensions Regulator (TPR) over two BHS pension schemes, which had a combined total of 19,000 members.
The clothing chain went into administration in 2016 with a £571 million pension deficit
He is charged with neglecting or refusing to provide information and documents in April and May 2016 and February 2017.
Earlier Chappell told the court that shortly before he bought the doomed high street chain staff had been seen putting ‘bin bags’ of documents into an ‘industrial-sized’ shredder located in the back of the BHS HQ in London.
Alex Stein, prosecuting, said the Regulator used a ‘stick and carrot’ approach to get someone to comply but was ‘always reasonable’ under the Parliamentary statute.
‘This defendant has refused to provide, to the best of his abilities, responses to the Section 72s.
‘When you look at all of the evidence as a whole you get a clear picture of obfuscation on behalf of the defendant.’
The case continues.
Sorry we are not currently accepting comments on this article.