High street retailer gets critical CVAs supported
Creditors of high street retailer British Home Stores have approved its proposals to trade its way out of its financial problems that will more than half of its landlords receive only part of the agreed rent.
95% of creditors approved the proposed CVAs for BHS Ltd and BHS Properties Ltd.
40 of its 164 stores will just pay 25% rent, while 47 will pay either 50% or 75%. The remaining 77 stores will continue to pay full rent.
Will Wright, restructuring partner at KPMG and supervisor overseeing the CVAs, said: “Today’s ‘yes’ votes enable BHS to tackle the issue of an unsustainable lease burden which was weighing heavily on the business.
“While together, the two CVAs comprise only one element of BHS’s plan to turn around its fortunes, they are a critical cog in the mechanism that will put the business in a stronger operational position. The proposal process has given both the company and its creditors the opportunity to agree a compromise that is mutually acceptable.”
BHS was bought by billionaire Sir Philip Green for £200m in 2000, but he sold it last year for just £1. It is now owned by Retail Acquisitions, a consortium of financiers, lawyers and accountants.
