The High Court has given judgment in Re BHS Group Ltd, the case brought by liquidators of certain BHS companies against former directors. The court has, in a rare step, found two former directors liable for wrongful trading.
The liquidators claimed over £160m from four of the former directors. Trial proceeded against two of those: Mr Henningson and Mr Chandler.
The court found that those two directors should have concluded that there was no reasonable prospect of avoiding insolvent liquidation or administration by 8 September 2015, some 7 months before the companies were in fact put into administration. They will each be ordered to contribute £6.5 million to the companies’ assets.
The claim against Mr Smith, the non-executive director of BHS Group Limited for whom Stuart Hornett and Daniel Webb acted, did not proceed to trial.
Look out for details of an upcoming webinar, where Stuart Hornett and Daniel Webb will address the implications of this important case for insolvency and company practitioners.