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

Face-to-Face Fundraising Agency
London, South East, UK

A leading face to face fundraising agency providing high quality private site campaigns. Long established company operating over 10 years. Operates from leasehold premises in London. Offers invited.

Asking Price: Offers Invited
Turnover: £2,600,000

LEASEHOLD


Unique Multi Faceted Business
West Sussex, UK Wide

Multi-faceted business opportunity developed by our clients in 2014 and now offered for sale due to the directors other business ventures. Owners have firmly planted the venue for live music particularly live jazz, blues, funk and soul. Any new buyer...

Asking Price: £299,950
Turnover: £768,916

LEASEHOLD


Pet Accessory & Health Food Retailer
Colne, Lancashire, UK Wide

Acorn's Healthy Option Pet Food Store. The shop is extremely well established and very well presented with a fantastic reputation; due to the good service and quality products the shop provides. Business has a lot of repeat customers, as well as the...

Asking Price: £249,999
Turnover: £606,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
18
 
Dec
 

High street clothing chain enters administration | ADMINISTRATION

A prominent high street clothing chain has collapsed into ad...

 
15
 
Dec
 

Two pub companies enter administration | ADMINISTRATION

Mitchell’s of Lancaster (Brewers) Limited and York Bre...

 
13
 
Dec
 

Harvard Technology Limited enters administration | ADMINISTRATION

A lighting company based in Normanton has been forced to eng...

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