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BHS file for administration


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That loan will need to be repaid though, going into administration doesn't write off any creditors.

 

by juggling things around the money ended up being owed by the company, if (when according to bbc news) it goes into administration the loan along with other debts will at best only be repaid at a few pence per pound and the rest will be written off.

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Looks like anothe town centre shop will be closed soon as BHS is going into administration, and with Primark on the Moor soon they will be struggling to carry on, hope someone does either save them or move into the BHS shop

 

And there lies the problem people prefer to shop at cheap stores like Primark.

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Just been reading todays Mirror about this seeing if there were any updates. In the article it also said: Suit chain Austin Reed could also go under this week with 1,000 job losses after filing a notice of intention to appoint administrators.

 

http://www.mirror.co.uk/news/business/bhs-boss-sends-letter-11000-7827153

 

http://www.mirror.co.uk/news/business/historic-british-firm-austin-reed-7826896

Edited by iansheff
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Just been reading todays Mirror about this seeing if there were any updates. In the article it also said: Suit chain Austin Reed could also go under this week with 1,000 job losses after filing a notice of intention to appoint administrators.

 

What'll be happening is that the quarterly rents are due, so companies with cash flow problems are struggling to pay their rents.

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Billionaire sells it for £1 lol. I would give the rest of his businesses a wide birth in the future. Selling all those peoples futures and pensions for £1

 

Why? The people buying it thought they could turn it round, but they were wrong. Businesses are turned round and then they make a big profit when they are resold. The alternative was he could have just closed the business , then.

 

---------- Post added 25-04-2016 at 11:53 ----------

 

Sound like asset strippers bought it. Four directors took an £8m loan from the company shortly after 'buying' it. Now it's going into administration. There should be a law against that sort of business practice.

 

There is and the administrator will investigate it.

http://www.theguardian.com/business/2016/mar/04/owners-84-million-pound-loan-from-bhs-staff-job-losses

They will be required to repay it and be personally liable if its found to be illegal and predjucial to creditors.

Edited by 999tigger
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I was listening to the radio last night & a panel of retail experts were saying that BHS, whilst retailing good quality goods such as home furnishings, is perceived as 'out of date' by consumers.

I like the store in Meadowhall, I know that the clothes, boxer shorts and socks are going to be of a reasonably high quality. It'd be a shame if all the stores close - I hope some can be salvaged.

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by juggling things around the money ended up being owed by the company, if (when according to bbc news) it goes into administration the loan along with other debts will at best only be repaid at a few pence per pound and the rest will be written off.

 

Have you got a link that documents this?

 

Are you sure it's not a loan FROM the directors to the company?

 

It is indeed correct that if the company goes under most of the debt will end up written off.

 

the guardian article referenced above

 

http://www.theguardian.com/business/2016/mar/04/owners-84-million-pound-loan-from-bhs-staff-job-losses

 

Indicates that the loan is still outstanding. It would not be written off if the company was closed, the administrators would pursue it in order to distribute the returned value to creditors.

Edited by Cyclone
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by juggling things around the money ended up being owed by the company, if (when according to bbc news) it goes into administration the loan along with other debts will at best only be repaid at a few pence per pound and the rest will be written off.

 

It will only be written off if the liquidator cant recover it. its still a debt.

The liquidator will seel to recover that money and if illegal the persons concerned will be personally liable to pay it back.

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