News: Closure date for Rotherham BHS store

The BHS store in Rotherham will close at the end of July after liquidators were brought in by administrators who have so far failed to find a suitable buyer for the national retailer.

The Parkgate store has been in "close-down sale mode" since the appointment of liquidators in June.

BHS Group Ltd was acquired by Retail Acquisitions Ltd in March 2015 from the Acardia group. The department store operates some 164 outlets in the UK and was acquired by Sir Philip Green's Arcadia in May 2000.

In the same month it denied that a list of 52 stores were those being considered for disposal. The list included BHS stores at Parkgate Shopping in Rotherham and at Meadowhall in Sheffield.

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Working with restructuring professionals at KPMG, the owners announced details in March this year of a proposed company voluntary arrangement (CVA) which divided BHS's 164 store portfolio into three main categories, based on the commercial viability and strategic importance of each site.

Administrators, Duff & Phelps confirmed that all stores are closing as part of an "orderly wind-down" of the business. Closure dates for 50 stores were confirmed this week.

Dave Gill, national officer at Usdaw, the trade union for the retail sector, said: "This is terrible news for the staff in the 30 stores affected, on top of the 20 stores that are closing this Saturday. Our hope is that other retailers, including Sir Phillip Green's Arcadia group, will offer employment to these experienced, dedicated and loyal staff who suddenly find themselves unemployed.

"At the same time we are aware that the administrators are continuing to seek a buyer, who will hopefully be able to secure the future of the staff in the remaining stores.

"We remain concerned that there is still no news from Sir Phillip since he promised to "sort" the pension scheme and we wait to hear details of what he proposes. In the meantime we are providing the support, advice and representation our members require at this difficult time."

BHS has seen its profitability decline as it has sought to respond to changing customer behaviours, increased competition and the rise in omni-channel retailing. It also has a reported pension defect of £571m.

The Work and Pensions and Business, Innovation and Skills Committees have been taking evidence as part of their respective inquiries into the BHS pensions, sale and acquisition.

Images: Parkgate Shopping

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News: Rotherham BHS store set to close

The BHS store in Rotherham is in "close-down sale mode" after administrators called in liquidators having failed to find a suitable buyer for the national retailer.

BHS Group Ltd was acquired by Retail Acquisitions Ltd in March 2015 from the Acardia group. The department store operates some 164 outlets in the UK and was acquired by Sir Philip Green's Arcadia in May 2000.

In the same month it denied that a list of 52 stores were those being considered for disposal. The list included BHS stores at Parkgate Shopping in Rotherham and at Meadowhall in Sheffield.

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Working with restructuring professionals at KPMG, the owners announced details in March this year of a proposed company voluntary arrangement (CVA) which divided BHS's 164 store portfolio into three main categories, based on the commercial viability and strategic importance of each site.

Administrators, Duff & Phelps have now confirmed that all stores are closing as part of an "orderly wind-down” of the business.

BHS has seen its profitability decline as it has sought to respond to changing customer behaviours, increased competition and the rise in omni-channel retailing. It also has a reported pension defect of £571m.

Duff & Phelps said in a statement: "Despite the considerable efforts of the administrators and BHS senior management, it has not been possible to agree a sale of the business.

"Although multiple offers were received, none were able to complete a deal due to the working capital required to secure the future of the company.

"Our thoughts today are with the employees. We thank them for their professionalism and hard work. We would also like to thank the great British public for helping us in our efforts to save BHS resulting in several weeks of significant sales."

Images: Parkgate Shopping

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News: BHS enters administration

The Rotherham store of national retailer, BHS is under the threat of closure after a wider turnaround plan failed to prevent administration.

BHS Group Ltd was acquired by Retail Acquisitions Ltd in March 2015 from the Acardia group. The department store operates some 164 outlets in the UK and was acquired by Sir Philip Green's Arcadia in May 2000.

In the same month it denied that a list of 52 stores were those being considered for disposal. The list included BHS stores at Parkgate Shopping in Rotherham and at Meadowhall in Sheffield.

Working with restructuring professionals at KPMG, the owners announced details in March of a proposed company voluntary arrangement (CVA) which divided BHS's 164 store portfolio into three main categories, based on the commercial viability and strategic importance of each site.

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A CVA was agreed but administrators have been appointed today, threatening 11,000 jobs.

Stores at Parkgate and Meadowhall were deemed amongst 40 locations where negotiations with landlords were undertaken to reduce the rents "substantially." Considered unviable, a reduced equivalent monthly rent of 25% was proposed to be paid for a minimum of ten months.

With administrators Duff & Phelps now appointed, a statement read: "The group has been undergoing restructuring and, as has been widely reported, the shareholders have been in negotiations to find a buyer for the business. These negotiations have been unsuccessful. In addition property sales have not materialised as expected in both number and value. Consequently, as a result of a lower than expected cash balance, the group is very unlikely to meet all contractual payments.

"The directors therefore have no alternative but to put the group into administration to protect it for all creditors. The group will continue to trade as usual whilst the administrators seek to sell it as a going concern. Further announcements will be made as appropriate in due course."

David Gill, national officer at the shopworkers trade union Usdaw said on Friday: "We are very concerned about speculation in the media that BHS is on the verge of going into administration. We are seeking urgent clarification from the company and urging them to change their attitude to trade unions and begin a dialogue with us at this difficult and worrying time for staff. We also urge the company to comply with the law, consult staff and Usdaw as the union for BHS workers on the future of the business. I am writing to members working in BHS to reassure them that we will provide the support, advice and representation they require."

BHS has seen its profitability decline as it has sought to respond to changing customer behaviours, increased competition and the rise in omni-channel retailing. It also has a reported pension defect of £571m.

The Rotherham branch of B&Q is set to close in June as part of plans to counteract a slowdown in the DIY market, which sees owners, Kingfisher plc, close around 15% surplus space (65 stores) by the end of the 2016/17 financial year.

BHS website

Images: Parkgate Shopping

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News: Rotherham BHS store on closure list

The Rotherham store of national retailer, BHS is under the threat of closure as the owners set out part of a wider turnaround plan that addresses the leases of its retail sites.

BHS Group Ltd was acquired by Retail Acquisitions Ltd in March 2015 from the Acardia group. The department store operates some 164 outlets in the UK and was acquired by Sir Philip Green's Arcadia in May 2000.

In the same month it denied that a list of 52 stores were those being considered for disposal. The list included BHS stores at Parkgate Shopping in Rotherham and at Meadowhall in Sheffield.

Working with restructuring professionals at KPMG, the owners have announced details of a proposed company voluntary arrangement (CVA).

A CVA is often used by insolvent companies to negotiate new payment terms or periods with its creditors, in this case, the rent on retail property. However, the CVA must be agreed by all creditors (the landlords) for it to be put in place.

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The CVA proposal divides BHS's 164 store portfolio into three main categories, based on the commercial viability and strategic importance of each site.

77 are considered its "most viable" stores, with proposals to pay rents monthly as opposed to quarterly. 47 premises have been deemed viable if a reduction in rent is obtained (of up to 75%).

Stores at Parkgate and Meadowhall are deemed amongst the remaining 40 locations that will continue to trade for a period of a minimum of ten months whilst negotiations with landlords are undertaken to reduce the rents substantially. Considered unviable, a reduced equivalent monthly rent of 25% is proposed to be paid for a minimum of ten months.

It is hoped that where rent reductions are achieved, these stores will remain open and that the store closure number will be kept to a minimum.

Will Wright, restructuring partner at KPMG and proposed supervisor of the CVA, said: "For almost 90 years, BHS has been one of the most iconic brands on the UK high street, but in recent years has seen its profitability decline as it has sought to respond to changing customer behaviours, increased competition and the rise in omni-channel retailing.

"While the company's store estate is located across favourable retail locations, a number of these leases are unsustainable, predicated on terms which were originally negotiated some decades ago. With the support of its lenders, shareholders and landlords, the company will be able to reshape its debt and operational structure to a model more suited to today’s multi-channel retail environment."

BHS website

Images: Parkgate Shopping

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