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dryrot

Bhs Gets Rent Reduction (Commercial Property, But Sign 'o The Times?)

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Hi

as title, has not been posted here AFAIKS. BHS gets rent reduction.

http://www.bbc.co.uk/news/business-35883134

"Almost all creditors of the troubled store chain BHS have voted to allow a cut in rents for some of its UK stores. The loss-making retailer had put forward the plan as part of an attempt to turn its fortunes around.

[...]

Under the agreement, a number of BHS's stores - 47 - will see a hefty rent cut of either 75% or 50%."

So rents can fall...

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Why would they do this, when they could probably find better tenants prepared to pay the going rate (or sell the buildings for residential flat conversion etc)?

Edited by Errol

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Why would they do this, when the could probably find better tenants prepared to pay the going rate (or sell the buildings for residential flat conversion etc)?

Clearly, they can't find tenants these days. No surprise - it's hard to make a profit on the high street these days.

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Clearly, they can't find tenants these days. No surprise - it's hard to make a profit on the high street these days.

Indeed. BHS stores are a big big for ideal charity shops :)

I would expect there were "upward only rent reviews" in BHS's contracts. But the LL can always agree to change that if the alternative is a void..

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Clearly, they can't find tenants these days. No surprise - it's hard to make a profit on the high street these days.

Clearly not......if the big boys won't pay the rents because of falling profits, excess stuff.....how can the small business survive?....I am more interested in small businesses surviving, the big corporates have more infuence and wriggle room.

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BHS has been a basket case for years. It's the last dying gasp for the business and the LLs know they won't be able to rent out such large premises easily :)

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