Creditors vote on British Home Stores (BHS).
One of the UK’s most famous high street names is facing the crucial vote on Wednesday, the troubled department store will see how it’s £1.3bn debt needs to be tackled with the need for cutting it’s rent bill over its 160 + stores. It also has a worrying £571m penison deficit… A real bad state BHS find itself in despite in recent years a purchase by Sir Phillip Green for £200m in the year 2000 (he later sold the brand for just £1 in 2015).
The current owners, Retail Acquisitions (consortium of financiers, lawyers and accountants) have a huge task to stable the seven year loss making company with over 10,000 workers with ‘cutting rents’ the most likely option going forward.
Landlords will be facing the bill for BHS with many of the stores looking at reduced rates to help see them through this period.
Darren Topp, CEO of BHS is reported as saying: “Although a difficult process to go through, this sets in motion the comprehensive updated turnaround plan“.
Can BHS really survive with such poor trading figures and a sinking amount of debt surrounding it? Will we see it’s demise as we did with Woolworths who were a firm high street favourite for many years… Have BHS kept up with current trends, will online save them, what have they in store to get them out of this hole?
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