Fears creditors will lose out follow demise of BHS
More than 3,000 creditors could be wiped out following the collapse of retail giant BHS.
The department store chain went into liquidation earlier this month – the biggest High Street casualty since the demise of Woolworths eight years ago.
Former owner Sir Philip Green, who is owed £35million by the business, is one of four secured creditors – alongside Barclays, Gordon Brothers and Grovepoint Capital.
This select group will have the first claim to any money recovered from the business by the administrators.
And it is feared that the 3,460 other creditors, who are thought to be owed a collective sum of more than £100million, will lose out.
One source told the Daily Telegraph: “Green, Barclays, Gordon Brothers and Grovepoint will get the first chunk of any recoveries and by the time you have paid the administrators, property agents and so on, the unsecured creditors will have been wiped out.”
The events leading up to the collapse of BHS, which employed around 11,000 people nationwide, are currently being scrutinised by MPs.
Former owner Dominic Chapell and chief executive Darren Topp are among the senior figures at the firm who have been invited to give evidence to Parliament’s Business, Innovation and Skills Committee.
At Royds our dispute resolution team has a wealth of experience representing clients in cases involving complicated insolvency laws. For more information please visit or contact Stewart Wilkinson or Ashok Patel.
Leave a comment
Thank you for choosing to leave a comment. Please keep in mind that comments are moderated. Please do not use a spammy keyword or a domain as your name or it will be deleted.