BHS has secured a £65m loan from investment group Grovepoint Capital as the retailer’s new owners seek to turnaround the business.
Retail Acquisitions, which bought the retailer from Sir Philip Green for £1 in March, has secured the loan against a small number of BHS stores, according to The Financial Times.
It is understood the loan is being used to accelerate the turnaround rather than meet an impending rental bill, and after the rental payment BHS will have working capital of more than £85m.
It emerged last month that Retail Acquisitions was in talks with various parties as it sought to raise around £70m from the City to fund its turnaround.
Former Beale’s chief executive and Moss Bros finance director, Michael Hitchcock, is acting as a consultant to Retail Acquisitions during the turnaround of BHS.
At the time, Retail Acquisitions said: “We have said all along that we would refinance to help accelerate the turnaround plan for the UK business.
“Every penny raised will support the regeneration of our portfolio of stores, returning this iconic British brand to its rightful place on the high street.
BHS, which made a loss of £85m in the year to August 30, 2014, is expected to spend the loan on the introduction of a food offer to its stores and international expansion.
It is also understood funds will be used to modernise stores and rebrand them from BHS to British Home Stores, while Retail Acquisitions is also seeking to expand the retailer’s online business and overhaul its distribution network.
BHS operates 171 UK stores has almost 80 overseas.