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| BHS threatens to close 40 stores | BHS threatens to close 40 stores |
| (35 minutes later) | |
| Department store chain BHS says 40 of its 165 stores may close unless landlords "reduce the rents substantially" on half its stores. | Department store chain BHS says 40 of its 165 stores may close unless landlords "reduce the rents substantially" on half its stores. |
| The company said it was cutting costs by reorganising its head office and management. | The company said it was cutting costs by reorganising its head office and management. |
| Loss-making BHS was sold for a £1 a year ago by Top Shop owner Sir Philip Green to Retail Acquisition although the deal was more complicated than the sum may imply. | |
| The stores will remain open for now. | |
| It believes it is paying well over market rates for around a quarter of its stores. | |
| BHS says if rents are not reduced it will seek protection from its creditors through a Company Voluntary Arrangement (CVA) that protects a business from its creditors - if 75% agree - and gives the company time to turn itself around. | |
| 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. | |
| "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." |