Retail Acquisitions, the company through which Dominic Chappell bought BHS from Sir Philip Green for £1, has been declared insolvent.
The High Court ruling delivered yesterday shed light on the amount of cash Chappell extracted from BHS prior to its collapse – amounting to around £9m.
Now insolvent, Retail Acquisitions’ assets will be scrutinised and BHS administrators Duff & Phelps can begin reclaiming funds for BHS’ creditors.
According to the ruling, after incorporating, Chappell’s business took out a loan of £6.2m from BHS. Then, shortly after buying BHS, it took another £2.8m from the retailer.
The money was given to Retail Acquisition’s directors, or companies owned by the directors, City AM reported.
The business also took out a loan of £3.5m from Green’s retail group Arcadia.
The application for permission to appeal by Chappell was refused by the High Court yesterday.
Chappell now has 21 days to renew his application to a High Court judge.
Former high street stalwart BHS collapsed last year with a £571m black hole in its pension scheme.
Earlier this month, the Institute of Directors (IoD) called for new governance rules for large private companies to avoid a repeat of the BHS pensions scandal.