Iconic high street retailer BHS is facing uncertainty today, as the store could be filing for administration due to £1.3bn of debt and a stand-off between its owner and the biggest lender.
The store’s original majority stakeholder and owner of Topshop, Sir Philip Green, sold it to current owner Dominic Chappell. Mr Chappell acquired BHS for just £1 last year.
Sir Philip Green is still one of the biggest lenders but has refused a last ditch attempt to save the business from Chappell, calling it “inadequate”.
There were talks with Sports Direct to acquire some of its 164 stores but this fell through due to the pension debt, according to the Sunday Times.
In a bid to aid the retailer, at the end of March, landlords agreed a cut to rent bills in the 164 stores across the UK.
Landlords of 40 stores were threatened that they would close unless they agree to receive 24% of the rent due in the next 10 months and negotiate rent reductions.
Usdaw national officer, David Gill, commented: “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.”
Last year, we looked into the uncertain future of high street retail.
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