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.
Highly experienced team in place, with a suitable candidate to fill an upper-level management position, if required. Serves a large regional client base, with clients operating in industry sectors including education, healthcare and facilities.
Strong pipeline of future work, which is currently valued at £2m. Provides over 2,500 unique automotive engine components for a comprehensive range of leading brands, catering to OEMs and wholesalers worldwide.
SIA / Safe Contractor approved, manned security and accredited training course specialist with impressive nationwide reputation and client base.
24
|
Apr
|
Middlesbrough metal recycling firm acquired from administration | BUSINESS SALE
Cupral Group Limited, a metal recycling business based in Mi...
24
|
Apr
|
Automotive parts supplier secures PE backing | BUSINESS SALE
Rimmer Bros, a Lincoln-based restorer and supplier of replac...
24
|
Apr
|
Kitchen firm expands construction sector offering with new acquisition | BUSINESS SALE
Nolte Kitchens UK has completed the acquisition of contracts...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
We can help you capitalise on insolvent businesses. We list UK businesses in administration, liquidation and with winding up petitions daily. Ensuring our members never miss out on an opportunity
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.