BHS management savages serial-bankrupt former owner Dominic Chappell over collapse
Former racing car driver is accused of failing to keep promises
BHS bosses slam ex-owner Dominic Chappell in a damning letter sent to staff, as the serial bankrupt prepares to face MPs.
The ex-racing car driver, who bought the department store chain for £1, is accused of failing to keep promises — and making suppliers jittery.
In the letter seen by Sun City, top managers also accuse Chappell’s company RETAIL ACQUISITIONS LTD (RAL), BHS’s last owner, of falling “short of expectations”.
In contrast they praise outgoing chief exec Darren Topp for his “tireless efforts” and “inspirational leadership”.
It emerged last week how Chappell called Topp a “f***ing p***k” by text, within hours of the chain collapsing last Thursday.
Chappell will face questions from the Business, Skills and Innovation Committee in the Commons.
The letter to staff reads: “Dominic Chappell continuously assured us he would deliver on raising funds, this was not the case.”
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It adds: “The inability of RAL to raise sufficient funds and dispose of key property assets, hindered the management team in delivering the turnaround plan.
“Any sums of financing raised or property disposals appeared to fall short of expectations.”
The letter goes on to say: “RAL ownership did not give confidence to the credit insurers and suppliers that would allow BHS to operate under normal trading terms.”
Aside from the snipes at Chappell, the letter “apologises” to staff for “the very sad situation we find the business in”.
It features the names of among others finance director Kathryn Morgan, commercial boss Alex
Morrison and retail chief Ciaran McCloskey — but not chief exec Topp.
The directors say they had a “viable and realistic” plan to save BHS and believe “given time” it “would ultimately have been successful”.
They praise Topp’s “inspirational leadership”, saying he told staff about the collapse rather than leaving it to the administrators DUFFS & PHELPS.
In conclusion, the letter says: “He insisted on announcing this sad news in person to the dedicated, talented and ultimately very let down team. As always people were his priority”.
Chappell bought BHS from TOPSHOP tycoon Sir Philip Green, due to face the Commons committee next week.