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Bankrupt BHS Owes Billions to Creditors

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BHS

Logistics suppliers are looking for answers following last week’s announcement that BHS would liquidate.

The 88-year-old British department store chain, which entered administration in April but failed to find a buyer, has started going-out-of-business sales at its 163 stores. In addition to the estimated loss of 11,000 jobs, the company’s creditors stand to lose everything they’re owed.

Among the 1.3 billion pounds ($1.88 billion) in liabilities are millions outstanding to logistics companies.

The Loadstar reported that DHL Supply Chain is owed 1.63 million pounds ($2.4 million), while the firm’s 300-plus employees that work on the BHS account could be laid off. Other logistics companies listed on documents filed in March are: Ligentia, which was owed 650,000 pounds ($940 million) but reportedly withdrew credit; 124,000 pounds ($179,329) to parcel delivery service Yodel; Home and Retail Logistics, a furniture delivery company; and Cranleigh Freight Services was owed 104,487 pounds ($151,109).

“We are continuing to talk to the administrators to seek further clarity around the impact of this week’s announcement,” DHL told the Loadstar.

The company’s other creditors include Asian suppliers and small businesses across the U.K. that supply stock, goods or services to BHS, and its collapse is already having repercussions. Cortaulds, maker of Pretty Polly tights, and CUK Clothing, a manufacturer and supplier of branded and private label clothing to retailers, have both entered administration, blaming BHS.

“The administration of BHS has added to the challenge of operating within a fiercely competitive market for seasonal products,” administrators RSM Restructuring Advisory said in a statement. “This has left the directors with little choice but to place the companies into administration. Regrettably, we have been forced to make 350 employees redundant to align with the current order book and we are assisting them with their claims to the Redundancy Payments Service.”

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