40 BHS stores under threat of closure

Department store chain BHS says 40 of its 164 stores may close unless landlords 'reduce the rents substantially' on half its stores.

Loss-making BHS, which has stores across Scotland, was sold last year for £1 by Top Shop boss Sir Philip Green, although the deal was more complicated than the sum may imply.

The buyers were Retail Acquisition, a low-profile group of investors.

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It believes it is paying well over market rates for around a quarter of its stores.

BHS is trying to secure a Company Voluntary Arrangement (CVA) in order to turn the business around.

In order to gain this, it needs to have the approval of 75% of its landlords.

The stores facing closure have not been identified and the company says they will stay open until the end of the year while negotiations are underway.

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“It is hoped that the store closure number will be kept to a minimum,” it said in a statement.

Chief executive Darren Topp said the move was necessary for the turnaround plan.

“The CVA proposal that we have announced today is a necessary milestone in resetting British Home Stores to ensure its long term future as an iconic British retail brand.”

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