Bell tolls for BHS
HIGH street retailer BHS is on the brink of collapse and could file for administration as early as today, following standoff between its owner and one of its biggest lenders.
Former BHS majority stakeholder and Topshop owner Sir Philip Green sold BHS to current owner Dominic Chappell.
Mr Chappell, a former racing driver, was found to be behind Retail Acquisitions, which had acquired BHS for £1 last year.
Sir Philip Green remains one of the business’ biggest lenders, but has reportedly refused a last ditch attempt from Chappell to save the business, calling it “inadequate.”
Talks were ongoing with the Mike Ashley vehicle Sports Direct to acquire some of its 164 stores, but according to The Sunday Times, these talks stalled over the weekend due to pension debt.
Last month BHS, which has 14 stores across the region, was forced to plan a CVA. At the end of March landlords agreed a cut to its rent bills in 164 stores across the UK to aid the struggling retailer.
It had threatened landlords of 40 stores – including three in the West Midlands – that they will close unless they agree to receive 25% of the rent due in the next 10 months and negotiate rent reductions.
David Gill, Usdaw national officer said: “We are seeking urgent clarification from the company and urging them to change their attitude to trade unions and begin a dialogue with us at this difficult and worrying time for staff.”
Meanwhile, menswear brand Austin Reed has filed a notice of its intent to appoint administrators following years of slumping sales.
The fashion retailer has attempted to modernise with its online offering and bespoke suit tailoring, but has failed to gain momentum, with four consecutive years of declining revenues.
