Commercial landlords of BHS stores are disappointed at being overruled on a vote to form a creditors’ committee as part of the retailer’s administration process.
A number of landlords and other creditors voted for a committee at last week’s creditors’ meeting but were overruled others which voted against, including the Pension Protection Fund, which is BHS’ largest creditor.
The British Property Federation (BPF), which represents commercial property landlords, said a committee would have offered landlords the opportunity to scrutinise the insolvency and raise concerns about the conduct of the administrators.
“In such a controversial and large administration it is staggering that landlords have been denied the chance to form a creditors’ committee, and highly unsatisfactory that the Pension Protection Fund has used its weight in this way,” said Ian Fletcher, director of policy for real estate, at BPF.
“Complete transparency is of the utmost importance in any administration, and it is extremely disappointing to see this has not been achieved in this of all cases.”
A spokeswoman for the Pension Protection Fund said: “The PPF does not generally support the creation of creditors’ committees, and in the meeting on June 22 our view was shared with the majority of creditors.
”We have a team of experts in place that are working to achieve the best possible outcome for all creditors and therefore we didn’t see the value in forming a separate committee. The administrators did not raise any objection to this and we were not contacted by any creditors beforehand to suggest the creation of a committee, as happens from time to time.”