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Soaring fees for BHS administrators

Duff & Phelps, one of the administrators for BHS, could receive just over £3.6m in fees, after it revealed that it may charge almost another £302,000 to wind down the collapsed retailer.

The additional cost of £301,864.50 was incurred due to the extra amount of time that has been spent on the administration process, and was revealed in an administrator’s report from Duff & Phelps to Lowland Homes, a property investment subsidiary of BHS, according to The Times.

Some £242,730 of the additional amount charged has already been paid, but Duff & Phelps said the cost should have been even greater at £455,722.

The additional costs came about as the administrator dealt with freehold and leasehold property and tax matters, as well as additional financial reviews and investigation costs.

The fees paid to Duff & Phelps, which are expected to reach around £4m, are on top of the amount already being paid to creditors to FRP Advisory, another of BHS’s administrators which charges a higher hourly rate than Duff & Phelps.

Earlier this month, a judge ruled that the former owner of BHS, Retail Acquisitions, was insolvent and its main director Dominic Chappell could be pursued for millions, although Chappell is reportedly appealing against the decision.

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