Retail Acquisitions, the new owner of BHS, is in talks to raise £70m in funding for the struggling department store just months after acquiring it from Sir Philip Green.
The consortium, which paid £1 for BHS in March, is in talks with several potential providers of additional debt facilities, including an unidentified hedge fund, according to Sky News.
The business reportedly wants to sign a deal for new financing by the end of September, when rent bills will fall across the high street.
In a statement a spokesman for Retail Acquisitions said: “We have said all along that we would refinance to help accelerate the turnaround plan for the UK business. Every penny raised will support the regeneration of our portfolio of stores, returning this iconic British brand to its rightful place on the high street. We are excited about the future and pleased that major financial companies share our optimism.”
Meanwhile, BHS has also appointed Michael Hitchcock, the former boss of the Beales chain, to help it separate its financial systems from that of Philip Green’s Arcadia, according to The Sunday Times.
BhS operates 171 stores in the UK and 78 abroad.