Former BHS Directors Ordered to Pay £110 Million

Two former directors of the collapsed retailer BHS, Dominic Chappell and Lennart Henningson, have been ordered by the court to pay £110 million to creditors for breaching their corporate duties. This ruling comes eight years after BHS went into administration, leaving a debt of over £1 billion, which included a significant pensions shortfall. The court found that the directors failed to enter insolvency when necessary, neglecting their fiduciary responsibilities. Chappell, who previously bought BHS for £1, did not attend the hearing and had no viable defense against the claims. Liquidators estimated that the total amount owed by the directors could reach £150 million due to penalties and interest. This landmark ruling underscores the potential for liquidators to recover more assets from directors of insolvent companies through misfeasance claims.