A London High Court trial is underway examining allegations that Edward Parladorio, a City solicitor known for advising high-profile clients, was involved in the misappropriation of £10 million from the BHS retail group in the period before its collapse in 2016. Parladorio, who has represented celebrities such as Hugh Grant and Ulrika Jonsson, denies breaching any fiduciary duties.

The case centers on the events following the 2015 sale of BHS Group’s share capital, originally owned by Sir Philip Green’s Arcadia retail empire, to Retail Acquisitions Limited (RAL). RAL, a company reportedly founded by Parladorio, was majority-owned by Dominic Chappell, who held a 90 percent stake. At the time, Chappell had been declared bankrupt four times. As part of the sale, RAL received a significant financial “dowry” from Green as an incentive to assume control of BHS.

Liquidators overseeing the insolvent BHS Group claim that during the 13 months RAL held ownership, the company’s assets were subjected to “outright plundering.” In their view, Parladorio was closely involved, described as Chappell’s “right-hand man” and jointly controlling RAL. Court documents indicate Parladorio managed RAL’s bank accounts and stated he was “in charge of payments from RAL.”

BHS entered insolvency in 2016, triggering investigations that led to Chappell’s conviction in 2020 on tax fraud charges, resulting in a six-year prison sentence. The liquidators’ legal team argues that Parladorio is responsible alongside Chappell for the alleged misappropriations, contending that the evidence does not support Parladorio’s claim that he was uninvolved.

Representing the liquidators, Joseph Curl KC described Parladorio as a “central figure” in managing BHS during the relevant period. Curl highlighted that Parladorio received a substantial daily fee of £2,275, capped at £32,000 monthly—significantly higher than the company’s chief executive or general counsel.

In his defense, Parladorio maintains that he acted in good faith and prioritised the interests of RAL and its creditors. Through his lawyer, Michael Gibbon KC, he denies being a director—either formally or informally—of any BHS Group company or having fiduciary responsibilities for them. Gibbon criticised the liquidators’ case as a “slanted distorted characterisation” featuring “relentlessly aggressive” and pejorative language directed at Parladorio.

The trial, presided over by Mr Justice Henshaw, is ongoing and set to conclude on October 26. It aims to determine the extent of Parladorio’s involvement in the financial management of BHS and whether he bears legal responsibility for the company’s losses.