OREANDA-NEWS. BHS ("the Group"), the iconic British high street brand and retailer of clothing, homeware, lighting and furniture, is pleased to announce that creditors to BHS Limited have voted to approve the proposed Company Voluntary Arrangement ("CVA") of BHS Limited representing 125 stores, at a BHS Limited creditors meeting held at 10.30 am today. This vote in favour of BHS Limited will ensure that the CVA process will go ahead, as the vast majority of stores in the CVA process are held in BHS Limited and ensures the continuation of the Group. 

Today at 2.30pm there is a separate meeting and subsequent vote on the proposed CVA for BHS Properties Limited, representing an additional 23 BHS stores. A further announcement will be made to announce the result of the vote concerning the CVA of BHS Properties Limited later today.

The success of the CVA of BHS Limited will enable the business to continue the Group-wide updated turnaround plan and safeguard the future of BHS, protecting thousands of UK jobs.

This vote is a significant milestone for the Group and the renegotiated rents at BHS' loss-making stores will drastically improve the financial viability of BHS, giving the Group the necessary financial flexibility to invest in the future of the Company through resetting, refocusing and rebuilding the business.

Over 95% of BHS creditors, including landlords, voted in favour of the CVA of BHS Limited, in excess of the 75% required for the CVA to be approved. The CVA proposal was approved without amendment and by the requisite majorities at the meetings held earlier today.

Commenting, Darren Topp, CEO of BHS said;

"On behalf of all at BHS I would like to thank our creditors and landlords for voting in favour of supporting this CVA. This gives BHS the opportunity to move forward and we can now continue with the updated turnaround plan that was announced when Retail Acquisitions Limited ("RAL") purchased the Group in March last year.

"It is a tough time for retailers across the UK with huge structural challenges faced by all, however, we have a very credible plan to return BHS to growth and profitability and a revitalised British Home Stores will emerge as we accelerate our turnaround plans. Our proudly independent, iconic retail brand will succeed with our more flexible, dynamic, customer-focused brand and organisation.

"This is confirmation that BHS' creditors also believe that the right strategy is in place and we have the right team to deliver that strategy. It has been a challenging time during the CVA process and we would like to thank our suppliers, colleagues and customers for their patience and support."

About British Home Stores

British Home Stores was established in 1928 and, today, is one of the UK's most recognised high street brand names. The BHS Group performs on average 1,000,000 transactions a week across 164 stores and 74 franchise stores across 18 countries.  The Company offers stylish clothing and quality home products, representing excellent value for money with no compromise on quality.

The business was acquired by Retail Acquisitions Limited "RAL" in March 2015. Shortly after acquisition, work on a turnaround plan was initiated which sought to restore the business to profitability.