Chappell facing High Court BHS suit
Administrators for BHS are to launch a High Court suit against the retail chain's former backer.
City A.M. understands that Duff & Phelps will file a suit on Monday, targeting Dominic Chappell and arguing that the businessman has not co-operated with its investigation into the retailer's collapse.
Chappell owns a 90 per cent stake in Retail Acquisitions, which purchased BHS for £1 from billionaire tycoon Philip Green in March 2015.
Both Green and Chappell have been called to give evidence to MPs over the demise of the retailer, with a specific interest in BHS' pension scheme, which has a deficit of £571m.
Chappell will sit before a joint hearing of parliament's Work and Pensions and Business Innovation and Skills committees on June 8, with Green set to attend a week later.
Work and Pensions Commitee chair Frank Field told Sky News this weekend that he wants to particularly focus on ties between Green and Goldman Sachs.
Goldman provided informal advice to Green over the sale of BHS, but was not paid to do so.
Field told Sky News: "I want to know why this was the case. Banks do not make big profits by acting as charities."
It comes as bidders close in on a deal for BHS. A source close to the process told City A.M. that it is hoped a deal will be signed early next week.
There are still hopes that a bidder will be sold in its entirety, rather then piecemeal, although this has yet to be confirmed.
Bidders linked to the chain have included Sports Direct owner Mike Ashley, budget retailer Poundstretcher and Matalan founder John Hargreaves.