BHS warns of collapse in three weeks

Wed, 09 Mar 2016 | ADMINISTRATION

BHS has warned creditors that they stand to lose as much as £1.3 billion if the embattled retailer cannot find a solution to its spiralling debts within three weeks.

At the BHS-proposed Company Voluntary Arrangement (CVA) filed at the High Court recently it was revealed that the distressed business has a pensions blackhole of around £571 million. This figure has risen nearly £120 million since the last valuation in 2012.

However, BHS also owes around £517 million to the commercial property landlords of its 164 stores up and down the country. The CVA document reveals that, if nothing drastic happens, the retailer will not be able to trade beyond 25 March 2016, when its rent payments are due.

The document says: “If the CVA proposal is not approved at the relevant meetings, or is otherwise not implemented, it is very likely that BHS Limited will no longer be able to trade as a going concern, which would result in the appointment of administrators.”

The document also sets out three alternatives: acceptance of the CVA, an administration period to recover some losses, or that the company would enter liquidation with unpaid debts of £1.3 billion.

Further on, the document says: “Because the treatment of landlords and other CVA creditors who are compromised by the CVA proposal is better than in the alternative… scenarios, the directors consider that the CVA proposal is fair compared to administration or liquidation.”

However, BHS has also indicated that even if the CVA is accepted, there will significant job losses.

For more information, see the guide: Buying liquidated assets an attractive option.


Share this article



Latest Businesses for Sale

National Reprographics & Flexo Plate Manufacturer (Fast Sale)
UK Wide

Opportunity to acquire the Business & Assets of :- A Well Established National Reprographics and Flexo Plate Manufacturer. Expressions of interest are to be made by COB Thursday 17 October 2019. All offers are to be received by Midday Wednesday 23 Oc...

Asking Price: Offers Invited
Turnover: £5,513,440

Electrical Installation & Service Retailer
West Midlands, UK

Service retailer member of Europe's largest buying group. Additional gift shop in the business with additional income streams. Business across 2 units (Retail & Storage, admin & service). Sale and installation and of aerials, satellites and CCTV. Of...

Asking Price: £249,999
Turnover: £530,000

LEASEHOLD


Care Agency
Cumbria, UK Wide

Well established care agency for sale. Situated in a predominantly residential area close to the town centre. Thriving business with ample growth potential. Highly reputed with regular and repeat trade. Offers invited.

Asking Price: £649,950
Turnover: £761,284

RELOCATABLE



View more businesses for sale

News Search

Latest News

 
16
 
Oct
 

Automotive supplier completes MBO | MBO/MBI

An automotive products supplier located in South Yorkshire h...

 
15
 
Oct
 

Tomlinsons Dairies falls into administration | ADMINISTRATION

Wrexham-based dairy firm Tomlinsons Dairies has announced to...

 
14
 
Oct
 

PE firm snaps up independent video game firm | BUSINESS SALE

Private equity firm NorthEdge Capital has successfully acqui...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
29
 
Sep
 

BHS 'reborn' as online only business, BHS digital | ADMINISTRATION

British Home Stores (BHS), which was wound down in June, is ...

 
03
 
Jun
 

BHS faces liquidation as rescue bids fail | BUSINESS SALE

BHS faces going into liquidation after administrators Duff &...

 
26
 
May
 

Pretty Polly tights firm enters administration after BHS collapse | ADMINISTRATION

The Derbyshire-based manufacturer of Pretty Polly tights has...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources