The fallout from BHS’s collapse into administration has already begun, as suppliers try to establish what they will receive back from the business.
As previously reported by Drapers, BHS’s unsecured creditors could receive around 1.23p in the pound if administrator Duff & Phelps fails to find a buyer.
The figure was revealed in documents accompanying its company voluntary arrangement (CVA) proposals, which were filed by KPMG on March 4.
One supplier told Drapers: “I chased them on an outstanding payment on Friday when we started to get worried and we’ve not heard anything back as yet. I’m not very hopeful and it looks like we might get our fingers burned.”
Duff & Phelps said it is too early to comment on the situation, but a spokeswoman for KPMG said the figure is likely to be in the region of 1.23p in the pound as per the original documents.
The documents said: “Your attention is drawn to the estimated outcome statement which shows 1.23p in the £ in an administration scenario and 6.15p-100p in the £ in the CVA scenario.
“The CVA proposal therefore represents a better outcome for BHS Limited’s unsecured creditors (including the landlords) than the outcome on the alternative, which would be BHS Limited going into administration.”
The CVA proposals both gained creditor approval last month and the deadline for challenges passed last Thursday.
However, the chain’s turnaround plan was dependent on it gaining additional funding to the tune of £170m, which failed to materialise and Duff & Phelps was appointed today.
BHS will continue to trade while Duff & Phelps attempt to find a buyer.