KPMG brought in as struggling BHS looks to cut costs

KPMG brought in as struggling BHS looks to cut costs

The company's owners - Retail Acquisitions - are believed to be looking at closing up to 50 of its 170 shops.

KPMG has been engaged by struggling retailer BHS to explore a number of options to shrink its store empire.

Among the possible routes being explored by the Big Four firm, according to The Sunday Telegraph, are a company voluntary arrangement (CVA) and individual negotiations with landlords to reduce rental outlays.

The company’s owners – Retail Acquisitions – are believed to be looking at closing up to 50 of its 170 shops.

Grant Thornton is understood to be looking at ways to ease the burden of the firm on its struggling pension scheme, facing a shortfall of well over £200m.

In March last year, colourful retailer Sir Philip Green announced that he was selling BHS Group Ltd, which he had owned for 15 years – to little-known Retail Acquisitions, itself formed just a few months earlier, for £1.

A spokesman for Retail Acquisitions told the paper: “BHS has stated publicly many times since the acquisition that it would like to take steps to address a number of unprofitable stores. This may involve discussions with some landlords, and KPMG will help us in this process.”

“We have made no secret of the fact that like other companies we have a pension deficit that we would like to address also and we continue to take advice in relation to this complex area.

“Our turnaround plan is still in its first year. Although we still have a long way to go, we are entirely confident that we will regain our place as an iconic British high street brand.”

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

Professional Services Why Professional Services Firms Should Ditch Folders and Embrace Metadata

1y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

1y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine

Accounting Firms Turn Accounts Payable into a value-engine

1y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021

Making Tax Digital Digital Links: A guide to MTD in 2021

1y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource