Troubled BHS faces vote on crisis

Creditors at troubled department store BHS are to vote on plans to determine the company's future today (March 23).

Wednesday, 23rd March 2016, 10:05 am
Updated Wednesday, 23rd March 2016, 10:07 am

British Home Stores will discover whether or not the business will slash the rent bill for 164 of its UK stores to help cut costs and prevent store closures.

The household and fashion retailer - which has two stores in Derbyshire - wants to ask landlords to cut rent on 47 stores to help them cope with their debts.

The company, which employs around 10,00 people, has been making a loss for seven years and currently has debts of more than £1.3 billion.

BHS was bought from the Arcadia Group by Retail Acquisitions last year.

Creditors are being asked to agree to a Company Voluntary Arrangement (CVA) for the reduced rents.

If they don’t agree, there is a chance BHS could go into administration.