The creditors of BHS Limited and BHS Properties Limited have today voted through the proposed company voluntary arrangements (CVAs), which will enable the business to restructure its property portfolio.
Will Wright, Restructuring Partner at KPMG and ‘supervisor’ of the CVAs, said:
“Today’s ‘yes’ votes enable BHS to tackle the issue of an unsustainable lease burden which was weighing heavily on the business. While together, the two CVAs comprise only one element of BHS’s plan to turn around its fortunes, they are a critical cog in the mechanism that will put the business in a stronger operational position. The proposal process has given both the company and its creditors the opportunity to agree a compromise that is mutually acceptable.”
Over 75% of creditors had to vote in favour of each CVA to pass the resolutions.
For further information on the CVA, please contact:
Erfan Hussain, Head of Press Office at KPMG: 07768 043447
Katy Broomhead, PR manager at KPMG: 0161 246 4623 / 07824 537963
KPMG Press Office: 020 7694 8773
For further information on BHS, please contact:
Slate Campaigns 07979 907 000
Buchanan 0207 466 5000
Charles Ryland firstname.lastname@example.org
About company voluntary arrangements (CVAs)
Where a company is experiencing difficulties in paying its debts, the directors can propose a company voluntary arrangement (CVA) whereby the company enters into a legally binding agreement with its creditors, such as their suppliers or landlords. In a similar vein to an individual voluntary arrangement (IVA), which gives an individual an alternative to bankruptcy, a CVA enables a company and its creditors to come to a compromise agreement and avoid an administration or liquidation. A CVA can provide a company with some breathing space to allow it to reorganise or restructure its funding and/or its operations with as little disruption to the day to day trading as possible, with the control of the company usually staying within the existing management.
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a revenue of £1.96 billion in the year ended September 2015. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 174,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
About British Home Stores
British Home Stores was established in 1928 and, today, is one of the UK’s most recognised high street brand names. The BHS Group performs on average 1,000,000 transactions a week across 164 stores and 74 franchise stores across 18 countries. The Company offers stylish clothing and quality home products, representing excellent value for money with no compromise on quality. The business was acquired by Retail Acquisitions Limited “RAL” in March 2015. Shortly after acquisition, work on a turnaround plan was initiated which sought to restore the business to profitability.