Revealed: The money Dominic Chappell took out of BHS

Credit: PA

I have obtained a copy of a letter sent by Dominic Chappell to MPs investigating the collapse of BHS in which he details the money he says he received from the business.

The letter is dated June 10th, was sent to both the Business, Innovation and Skills and the Work and Pensions select committees. The letter reveals that Chappell personally received more than £2.6 million in salary, bonuses and fees.

On Wednesday, Chappell, who bought BHS from Sir Philip Green for £1 in March 2015, was accused by its former chief executive, Darren Topp, of having his "fingers in the till".

Michael Hitchcock, BHS's former financial consultant, told MPs that Chappell's consortium, Retail Acquisitions, had taken at least £17 million out of BHS over a 13 month period, although he also said he thought that around £10 million had been returned.

When challenged by MPs, Dominic Chappell admitted he had personally made a profit from BHS but wouldn't say how much, agreeing to provide MPs with a spreadsheet detailing transactions between himself, Retail Acquisitions and BHS.

In his letter, which is published below, Mr Chappell says he received £1,977,643 in fees from both Retail Acquisitions and BHS and £650,000 in salary, benefits and bonuses.

Dominic Chappell's letter to the Business, Innovation and Skills Select Committee and the Work and Pensions Select Committee Credit: ITV News

Additionally, the letter refers to an interest free loan of £1.5 million which was made from Retail Acquisitions to his parents. On Wednesday Chappell told MPs that £500,000 of the loan had been repaid. He now admits that the full amount is outstanding.

These sums of money aren't anywhere near as large as some of the figures that have been suggested but they are still eye-popping sums. The average full time worker BHS earns £18,000 a year.

I contacted Dominic Chappell. He told me that his salary was set by BHS's remuneration committee which he insists was independent. Chappell says he wasn't on the committee but Darren Topp was and the committee was chaired by Keith Smith, Chappell’s uncle.

Mike Ashley will also give evidence about the BHS collapse Credit: PA

Chappell told me the fees he charged related to legal costs and staff wages he'd had to pay as well as commission he was owed for successful property sales and for raising funding for BHS.

Chappell stands by the evidence he gave to MPs; that this was money he'd earned and the sums reflect the risks he'd taken and the energy and time he'd spent trying to turn BHS around. He told me that the "vast majority" of the fees he charged were used to pay his expenses and VAT and corporation tax bills.

So this letter details the "gross payments" that Dominic Chappell received, it does not tell us how much he personally pocketed. Chappell says he won't be able to provide a “profit” figure for some time as he needs payslips and other "accurate records" from third parties.