Retail Acquisitions, the company used by former bankrupt Dominic Chappell to buy BHS for £1, has been placed in liquidation.
The high court ruling could pave the way for administrators Duff & Phelps to recover the £6 million owed to the collapsed retailer.
Retail Acquisitions, which bought BHS in 2015, has been accused of extracting £17 million from the retailer, even as it fell into administration.
An estimated £6 million was owed by Retail Acquisitions to BHS when it collapsed, reports the Guardian.
It is understood Chappell is likely to appeal against the court decision.
The administrator said in a statement: “Duff & Phelps, acting on behalf of BHS Group Ltd, is satisfied that Retail Acquisitions Limited has been put into liquidation.
“The process of realising the assets of RAL can now commence to the benefit of all the creditors of the BHS companies.”
BHS plunged into administration just over a year ago, impacting 11,000 jobs and leaving a £571 million pension deficit.
Sir Philip Green agreed to pay £363 million to settle the BHS pension scheme in February.