Job cuts at BHS over landlord row
It looks like there's going to be 150 job losses at the head office, and another 220 in their stores. An entire layer of management is going to be culled to achieve this. 100 planned jobs will also be scrapped before being filled.
This is all in the shadow of BHS's management saying that the department store chain is going to be placed in what is known as a company voluntary arrangement (CVA), which basically sees the business asking for big reductions on their rent from landlords.
The company said that 40 of their shops are going to "continue to trade for a minimum period of 10 months whilst negotiations with landlords are undertaken to reduce the rents substantially", continuing that BHS "hoped that the store closure number will be kept to a minimum".
Of course, should any stores close because of all this, it means that there's going to be significantly more job losses, which is terrible news for BHS staff.
Darren Topp, a chief executive at BHS, said: "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."