BHS new owners are seeking to turnaround the business and have secured a £65 million loan from investment group Grovepoint Capital to make it happen.
Retail Acquisitions secured the loan against a small number of BHS stores after buying the retailer from Sir Philip Green for £1 in March.
It is assumed that the loan is being used to accelerate the turnaround rather than meet an impending rental bill. After the rental payment BHS will have working capital of more than £85 million.
Last month it arose that Retail Acquisitions was in talks with various parties as they sought to raise around £70 million from the City to fund their improvements.
Michael Hitchcock, Former Beale’s chief executive and Moss Bros finance director, is acting as a consultant to Retail Acquisitions during the turnaround of BHS.
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 is expected to spend the loan on the introduction of a food offer to their stores and international expansion. It is also understood that 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.
