A court ruled today that Retail Acquisitions, which Chappell used to buy BHS for £1 in 2015, could be liquidated after weeks of wrangling.
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It means that administrators at Duff & Phelps, who are attempting to return money to creditors, can access Retail Acquisitions’ financial accounts.
Under Chappell’s tenure as owner of BHS, £8.4m was taken out of the chain by Retail Acquisitions, with £6m still owed when it collapsed last year.
The administrators said: “Duff & Phelps, acting on behalf of BHS Group Ltd, is satisfied that Retail Acquisitions Limited (RAL) has been put into liquidation.
“The process of realising the assets of RAL can now commence to the benefit of all the creditors of the BHS companies.”
Chappell had argued against liquidating RAL as it would make his own potential claim against Sir Philip Green’s Arcadia Group more difficult to pursue. Sir Philip owned BHS for 15 years before selling it to Chappell.
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BHS plunged into administration just over a year ago, impacting 11,000 jobs and around 19,000 pension holders, leaving a £571m pension deficit. Green agreed to pay £363m to settle the BHS pension scheme in February.
Chappell said RAL was “disappointed” by the outcome of the hearing, adding: “The order has been stayed by the court until its written reasons are provided so that RAL has an opportunity to properly consider an appeal.
“It will look forward to those written reasons and will then be able to take advice and decide next steps, to include an appeal.”