BHS threatens store closures..

It was announced yesterday that “Department store group BHS is to seek rent reductions on more than half of its estate and has warned it will otherwise be unable to meet financial obligations.”  It’s going to be a tough time for many BHS staff, unfortunately.  Perhaps including those locally.

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The BHS chief executive is reported to have said “

BHS has divided its stores into three categories for the CVA (Company Voluntary Arrangement): a group of 77, which would be unaffected; 47 which would be viable if rents were reduced to “market levels” and 40 which could trade for 10 months while negotiations with landlords were conducted to reduce rents “substantially”.

Topp said he hoped the number of stores closed could be kept to “a minimum”.

He said: “The CVA is a necessary milestone in resetting British Home Stores to ensure its long-term future as an iconic British retail brand.

“Some of our stores are loss-making as we are being charged rents that are too high relative to today’s market. The CVA will address this issue.

“Although a difficult process to go through, this sets in motion the comprehensive updated turnaround plan that we have identified, and gives British Home Stores a secure financial footing from which to grow and deliver sustainable profitability.”

But it’s a disturbing thought that BHS is the main occupant of Ashwood House in Camberley.  That’s the building that the borough council acquired last summer as an investment.

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4 thoughts on “BHS threatens store closures..

  1. Going going gone. Lets face it nearly every council everywhere has contributed to highstreet destruction. BHS will leave because landlords are supergreedy and in Camberley it is the usual parking horror experience which keeps peeps away.

    • I suppose the queues of cars trying to get into Main Square car park on Saturday afternoon are either a success or a failure, depending on how you look at it. But the council could make their lives easier, if it cared to.

  2. Shame for the staff,but the shop is always dead constant 70% sales poor stock apart from the lighting section same happened with Littlewoods prior to Primark. Goes back to the old comments Camberley needs some Quality shops to bring the people in.

    • Catch 22. Without decent shops already, decent shops aren’t going to be keen to come. Really smart streets would help, but none of those who could achieve this seem particularly motivated….

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