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BHS creditors vote through CVAs
BHS has been saved from collapse after the retailer's creditors voted through its proposed company voluntary arrangements.
The deal will enable BHS to restructure its property portfolio.
Acquired by Retail Acquisitions from Sir Philip Green’s Arcadia Group last year, BHS proposed the CVAs as it looked to turn the business around. The retailer needed to secure at least 75% creditor approval for the deals.
BHS had said previously that it may have had to shutter up to 40 stores if landlords of store sites did not reduce their rents “substantially”.
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.”