Since Retail Acquisitions acquired BHS it has been rationalising its stores as well as other measures in order to turn its fortunes around. However that may not be enough because it believes it is paying considerably more than the market rate on some of its premises.

In order to implement overhead reductions, it may prepare proposals for a CVA, to reduce its rental liability, and perhaps its overall position with creditors, depending on how the restructure is planned.

In my experience, high rent is one of the main causes of failure, and perhaps we may be seeing more CVA’s in the future to reduce the rent liability in order to survive.