The troubled clothing and home retailer has been put into liquidation after its largest creditor, the Pension Protection Fund (PPF), came to the conclusion that winding the company down would be in the pensioners’ best interests. FRP was appointed liquidator last week, taking over from administrators, Duff & Phelps.
Duff & Phelps also assisted with the investigation into Sir Philip Green over the last few months. According to reports, he held a floating charge of £35 million over the retailer and is therefore considered a secured creditor. He would stand to receive all his money back from the administration, something which FRP lawyers are questioning the legitimacy of.
The PPF has been pressuring the company to appoint FRP since the summer as they claimed the administrators were ‘too close’ to Green.
It has been said to BHS that liquidation is the best way to recover its millions pounds worth of debt by selling off all its assets.
Malcolm Weir, Head of restructuring and insolvency at PPF, said “We believe the liquidation is the right way to secure the best possible recovery for the pension schemes and other creditors of the insolvent company.”
“The liquidator will now be able to progress all remaining issues, including the leases and the ongoing investigatory work.”