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The owner of the now collapsed British Home Stores (BHS) was forced out of a previous venture after allegedly taking £315,000 from the business for personal use, according to a report.
Dominic Chappell took the money from his last company, Olivia Petroleum, without the approval of shareholders, the Guardian
It was unclear whether the sum was taken as salary or a loan, but if it was the latter it has not been repaid. Mr Chappell denied any wrongdoing.
Last year, Mr Chappell 's consortium, Retail Acquisitions, bought BHS off Sir Philip Green last year for £1. The Serious Fraud Office is believed to making inquiries into the activities of the consortium in the run-up to the deal.
A lawyer acting for Olivia Petroleum wrote an email in November 2011 stating: "There is an awful amount of money spent in travel, restaurants, shopping and UK, which indicates that this could be considered as hidden salaries of payment in species to employees. Big liability here.
"The company is not trading and this is not in accordance with that."
Mr Chappell told the Guardian that allegations that he took large amounts of money out of the business for personal use were "totally untrue".
He said the money taken totalled " under €200,000". "That was my salary. That’s what I drew from the company," he said.
However Mr Chappell later added that he had not taken a salary but rather received "a directors' loan" amounting to "€ 212,000 [£167,500], I think".
Olivia Petroleum was set up to buy and develop an oil storage facility in Cadiz, on the south-western coast of Spain.
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The collapse of BHS, which is currently in administration, could lead to the loss of 11,000 jobs.
Its former owner, Sir Peter Green, has vowed to appear before the select committee to clear his name of allegations he asset-stripped BHS before its sale to Mr Chappell's consortium.
Sir Peter has said he invested £10m in the retail company rather than taking money out.
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