Arcadia in £30m deal with BHS liquidators

By

Barbara Santamaria

Published
Aug 25, 2017

Arcadia Group owner Sir Philip Green has agreed to release £30m to unsecured creditors of collapsed retail chain BHS, in a deal that allows him to avoid a legal battle.

This is part of an agreement reached between Arcadia Group and BHS liquidator FRP Advisory, following the demise of the department store with the loss of 11,000 jobs in 2016.

Arcadia owned BHS until 2015, when it sold the struggling business to a consortium led by Dominic Chappell for £1.

As a result of the agreement, Arcadia will see a legal claim filed against the company dropped. The action was filed by SHB Realisations, the name used by BHS in liquidation, at the High Court earlier this month over a £35m floating charge dated 14 April 2015.

“We can confirm that as part of the agreement, over £30m was released from reserves held in relation to Arcadia’s secured claim into the monies available for BHS unsecured creditors and the floating charge is to be released,” said a spokesman for FRP.

Sir Philip Green had also previously agreed to pay more than £300m to rescue the BHS pension scheme.