Creditors of struggling department store chain British Home Stores (BHS) are to vote today on a survival plan aimed at slashing its rent bill and preventing further store closures.
Retail Acquisitions, which paid billionaire tycoon Sir Philip Green £1 for the loss-making fashion and homewares retailer a year ago, is seeking two company voluntary arrangements (CVAs) that ask those owed money by BHS to accept lower rents.
The business, which currently has 164 stores, is asking landlords to slash rents by up to 50% at 47 of them.
It also argues that rents at a further 40 stores must be cut "substantially" otherwise they are unlikely to survive.
However, BHS has said it will pay rent at current rates on 77 of its "most viable" stores.
A lack of support for the plan would place its future in jeopardy and threaten more than 10,000 jobs - with 8,500 employed directly by BHS.
It has been in the red since the financial crisis - with losses widening to £21m in the financial year before BHS was sold off by Sir Philip.
He had paid £200m for it back in 2000 but it has struggled amid stiff competition and tough trading conditions.
The new owner needs to win the backing of 75% of BHS creditors to secure its turnaround plans.
Sky News revealed earlier this month how it was cutting almost 400 jobs to try to save cash.
Chief executive Darren Topp said on 3 March: "The CVA proposal ... is a necessary milestone in resetting British Home Stores to ensure its long term future as an iconic British retail brand.
"Some of our stores are loss-making as we are being charged rents that are too high relative to today's market.
"Although a difficult process to go through, this sets in motion the comprehensive updated turnaround plan that we have identified, and gives British Home Stores a secure financial footing from which to grow and deliver sustainable profitability."
BHS is also facing a challenge to protect thousands of savers in its pension scheme, which has a deficit of £571m.
The creditor rights of its pension fund have been passed to the Pension Protection Fund (PPF) - an organisation that safeguards pension scheme members if their employer becomes insolvent.
Members are set to receive compensation with those yet to retire on course to net 90% of the value expected.
People already retired are likely to receive the same amount in compensation as they were already drawing, the PPF said.
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