The property industry remains sceptical that a sale of the entire 164-shop BHS estate can be agreed.
As EG went to press, a Portugese-backed consortium fronted by the former head of Mothercare, Greg Tufnell, was tipped as the front-runner. Administrator Duff & Phelps is pushing for a sale arrangement in which a buyer would take on the entire estate.
However, this would include the 40 shops considered to be the least profitable in KMPG’s CVA document. Landlords have agreed to accept 20% of the rent for 10 months on these shops.
One affected BHS landlord said: “You would have to be a real risk taker to want to take these on. The landlords have already agreed to a CVA on these shops, which shows how unprofitable they are, and the only reason the administrators are trying to include them in the sale is so that they can keep the business intact.”
If a deal for the whole estate is agreed, as envisaged by the administrator, the buyer would have to consider the cost of shutting down the undesirable shops as part of its bid.
Rescue deals from retailers including Mike Ashley and Edinburgh Woollen Mill’s Philip Day have fallen through.
SEE ALSO:
BHS: landlords, stores and expert analysis
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