Creditors of BHS are set to receive an interim payout amounting to £36 million against the almost-£1 billion worth of debts.
In a document that was sent to creditors last week, the liquidator of the former high street retailer, FRP Advisory, revealed a 3.6 per cent dividend that will be paid to creditors who are owed money.
FRP is in the process of winding up the collapsed retailer and directing the proceeds of residual assets to creditors.
READ MORE:
The interim payout follows July 2016 estimates that a minimum of 2p per pound to a maximum of 8p per pound would be returned to unsecured creditors – totalling to £998 million.
According to various reports, most of the interim dividend that is included in the FRP report will be funded by an agreement that was finalised last summer in which Sir Philip Green’s Arcadia Group agreed to release a floating charge amounting to £35 million owed to BHS.
BHS was part of the Arcadia Group retail empire for about 15 years, when Green sold it for £1 to Retail Acquisitions – the firm that was run by former bankrupt Dominic Chappell.
When BHS collapsed in April 2016 under Chappell’s leadership, 11,000 people lost their jobs and the £571 million pension black hole was revealed afterwards led to a parliamentary inquiry and a probe The Pensions Regulator.
Green agreed to pay £363 million into the pension deficit of BHS following months of outcry from the public and criticism from various MPs.
Several matters surrounding the circumstances of BHS’s collapse remain under investigation from other authorities – including the Insolvency Service and the Financial Reporting Council.
Click here to sign up to Retail Gazette‘s free daily email newsletter
