BHS will today find out if its proposed CVA application to reduce rents on more than half of its stores has been approved by landlords.
Scores of creditors and landlords are due to vote on the CVA (Company Voluntary Arrangement) in two batches, at 10.30am and 2.30pm.
The embattled department store group launched a CVA earlier this month in a bid to slash its rent and prevent it going into administration. It needs 75% of its landlords to agree to the deal.
BHS is asking for the landlords of 40 of its stores to agree to cut rents by 75% and is seeking reductions of between 25% and 50% at another 47 stores.
In addition to the proposed CVA, BHS has also revealed plans to cut 370 jobs across its headquarters and stores as it tackles its financial issues.
BHS chief executive Darren Topp used his Retail Week Live keynote speech last week to plead with the retailer’s landlords and suppliers to back its proposed CVA.
Having mapped out his three-step strategy to “reset, refocus and rebuild” the business, Topp said: “If there are suppliers and landlords in the room, please, we need your support next Wednesday.”
The department store insisted last week that it was confident that the CVA would be voted through, despite opposition from a landlord.
Hermes Investment management, which is the landlord of two of BHS’s 164 stores, voiced its objections, saying that the CVA had the potential to create unfair competition on the high street.