Department store chain BHS secures loan from former Blockbuster owners

 
Kasmira Jefford
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High Street Retailers Facing Bleak Outlook For 2012
BHS was sold for £1 by Sir Philip Green last year (Source: Getty)

The owners of BHS are understood to have secured a £10m loan from US turnaround specialist Gordon Brothers, as it attempts to turn itself around and expand its fledgling food business.

Documents filed on Companies House show that a subsidiary of Gordon Brothers has been granted a legal charge over BHS' leasehold store at Cribbs Causeway shopping centre in Bristol. The company is best known for buying DVD rental retailer Blockbuster out of administration in 2013 before it collapsed again six months later.

BHS' parent company Retail Acquisitions is thought to have borrowed around £10m, as it seeks to push ahead with the expansion of its food convenience chain. The company has already gone cap in hand to lenders after securing a £65m injection from investment group Grovepoint Capital last year.

Retail Acquisitions, a consortium led by former racing driver Dominic Chappel, bought the struggling clothing and homeware retailer in March last year for £1, bringing 15 years of ownership under Sir Philip Green’s Arcadia empire to an end.

In September, BHS' chief executive Darren Topp unveiled the new branding for its stores and announced plans to open up to 60 food stores this year. It has planning consent for around 140 shops within its 170-stores estate.

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