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sadly as I predicted below on march the 3rd a full administration was inevitable.

we will now see store closures across the country with stock funded by the suppliers [who will receive pence in the pound] in stores supported by the landlord at reduced to nil rental.

sales will be huge and will be sufficient to reward the insolvency team charged with running the business in administration. what is certain is that staff suppliers and landlords will get next to nothing after those fees have been deducted. remember woolworths?

much print will be used to speculate where the cash from this business has gone, particularly the £55m which I suggest was in part the reason why they choose to enter in to administration now in order to pay back the loans incurred from the nice people at Gordon Brothers etc and I would be very surprised to learn that the directors have suffered any loss at all. indeed I expect to see them make a handsome return for there time.

might BHS survive as a smaller retail company having shed its debt burden? entirely possible but my best bet is that the break up value will win out and the name will be consigned either to online or history.


COMMENTS FROM MARCH 3RD.
As predicted the £65m investment and further £10m post acquisition from Gordon Brothers was never going to be enough and landlords have been waiting for an insolvency process to begin.


what is clear is that this is a temporary measure as unless they find the right market positioning and generate some cash to drive the investment required to really make a difference a full administration will follow.