Yahoo Finance Dominic Chappell's company to sue Sir Philip Green over BHS headquarters
Retail Acquisitions, the company owned by former bankrupt Dominic Chappell has is planning to sue Sir Philip Green and his Arcadia Group for £14m in relation to the sale of BHS's headquarters.
Mr Chappell, who bought BHS for £1 in 2015, has been fighting a winding-up order against Retail Acquisitions (RAL) in the courts.
Last year he told MPs that he was planning legal action against Sir Philip , but this is the first time details have emerged.
BHS administrators Duff & Phelps have argued that there is "overwhelming evidence" that RAL is insolvent and said a winding up order would help it to investigate the transfer of money from BHS to Mr Chappell's company.
Retail Acquisitions took a £8.4m loan from BHS and a £3.5m loan from Arcadia ahead of its purchase of the 88-year-old retail chain.
However, Mr Chappell is suing Sir Philip Green after claiming that the Topshop tycoon reneged on an earlier agreement to share the proceeds of the £35m sale of BHS' headquarters, known as Marylebone House, which would have boosted the retail chain's balance sheet by £8.5m.
But rather than sell Marylebone House to another property company owned by the Dellal family, Marylebone's House was transferred within the Green family's investments; from Lady Tina Green's British Virgin Islands Wilton Equity vehicle to Taveta Investments, the holding company for Sir Philip's retail empire at a purchase price of £53m.
Retail Acquisitions is understood to be suing for the loss of proceeds on Marylebone House, despite it emerging during last year's select committee that Sir Philip had provided £10m in compensation two months after Mr Chappell bought BHS.
People close to Sir Philip Green have highlighted that there had never been a contract between the retail billionaire and Mr Chappell in relation to Marylebone House, therefore there was not a breach of contract.
"Sir Philip Green failed at the High Court in his deliberate attempt, through his preferred administrators, to close RAL which is seeking to secure millions of pounds for the ultimate benefit of BHS pensioners", a spokesman said.
"Sir Philip tried to force RAL into liquidation thus limiting the company's ability to make a £14m pound plus claim against him and or his related companies", he added.
The spokesman added that remaining solvent would allow it to continue to assist BHS liquidator FRP to recover £35m which is currently in dispute.
The Pensions Regulator has launched enforcement action against BHS's former owners including RAL, Dominic Chappell and Sir Philip Green to plug the chain's £571m pension deficit.
During a High Court hearing on Thursday, Ruth den Besten, appearing for Duff & Phelps, said: "There is overwhelming evidence that RAL is insolvent."
Ms den Besten told registrar Nicholas Briggs, a specialist judge in the companies court: "There are real concerns about the continued management of RAL by Mr Chappell."
Matthew Parfitt, who represented Mr Chappell, argued he was entitled to an adjournment to produce further evidence on disputed issues, including whether there was support for accusations of "balance sheet insolvency" related to RAL.
The trial has been adjourned for two months. Sir Philip declined to comment.
