Speculation mounts as BHS teeters on the brink
Speculation mounted this afternoon that BHS was close to appointing administrators, just weeks after the company completed a company voluntary arrangement (CVA).
Reports from Retail Week suggested the retailer, which was sold for £1 to the previously unknown Retail Acquisitions by Sir Philip Green in March last year, was on the brink of bringing in administrators.
Some 95 per cent of landlords and creditors gave their seal of approval to the CVA almost exactly a month ago, weeks after it had secured a £10m loan from a US turnaround specialist.
But a source familiar with the CVA told City PM it had been expected to raise additional finance – although nothing has been announced so far.
"Raising finance has been a sticking point," he said. The company's hand may be forced next week, when rent and wage bills are due.
At the time of the CVA, KPMG restructuring partner Will Wright, who was proposed as its supervisor, said the deal was "one facet of a wider turnaround plan".
"With the support of its lenders, shareholders and landlords, the company will be able to reshape its debt and operational structure to a model more suited to today's multi-channel retail environment," he said.
A spokesperson for BHS was unable to comment on the reports.