Former BHS owner Dominic Chappell is set to be banned from serving as a company director for up to 15 years, the Insolvency Service has said.
But Sir Philip Green will escape action over the chain’s controversial demise.
The Insolvency Service said it had written to Mr Chappell and three other former BHS directors informing them it intends to bring proceedings against them following its investigation into the retailer’s collapse.
Sir Philip – who sold BHS to Mr Chappell for £1 in 2015 – has been told he will face no further action in a move that brings to an end regulatory probes against him over the chain’s failure.
Sir Philip’s representatives said: “Sir Philip and his fellow directors have co-operated fully with the Insolvency Service since its investigation commenced in May 2016, and welcome this decision.”
Mr Chappell and other former BHS directors facing sanctions can now make representations to the Insolvency Service before it files formal court proceedings.
Mr Chappell told the Press Association he has not been notified of the move by the Insolvency Service, adding that he has no further comment to make at this stage.
The Insolvency Service said: “As this matter may now be tested in the court it is not appropriate to comment further.”
Mr Chappell was hit last month with a bill of around £10 million by the Pensions Regulator after it launched proceedings to claim back the cash owed to the failed retailer’s pension schemes.
The 51-year-old self-described entrepreneur was convicted in January of failing to give information about BHS’s pension schemes to investigators after it collapsed into administration with the loss of thousands of jobs.
Mr Chappell was the director of Retail Acquisitions, the company that acquired BHS from Sir Philip.
The business collapsed into administration in April 2016, leaving a £571 million pension deficit. Sir Philip later agreed to pay £363 million towards it to end action against him by the Pensions Regulator.
Mr Chappell – a former racing driver – is said to have been declared bankrupt three times in the past.
Investigations by the Financial Reporting Council into the chain’s failure continue.