British Home Stores (BHS) has warned its creditors they could lose as much as £1.3bn if they do not agree to a drastic turnaround strategy. KPMG says BHS will not be able to trade in its current form beyond 25 March, when its next payments are due. BHS is asking landlords of 40 of its least-viable stores to accept a 75% cut in rent and potential closure in ten months, and rent reductions of either 50% or 75% in a further 47 more-viable stores; even if the deal is accepted, One of staff are expected to lose their jobs. BHS owes Arcadia over £35m in the form of a secured loan. The retailer has been hit by high rents and the trend towards online shopping in recent years, which has hit footfall and profitability. thousands source notes that "these leases were agreed at a time before digital retail, when the high street was vibrant".
British Home Stores (BHS) has warned its creditors they could lose as much as £1.3bn if they do not agree to a drastic turnaround strategy. KPMG says BHS will not be able to trade in its current form beyond 25 March, when its next payments are due. BHS is asking landlords of 40 of its least-viable stores to accept a 75% cut in rent and potential closure in ten months, and rent reductions of either 50% or 75% in a further 47 more-viable stores; even if the deal is accepted, thousands of staff are expected to lose their jobs. BHS owes Arcadia over £35m in the form of a secured loan. The retailer has been hit by high rents and the trend towards online shopping in recent years, which has hit footfall and profitability. One source notes that "these leases were agreed at a time before digital retail, when the high street was vibrant".