The Dundee BHS store has been handed a lifeline after the struggling retailer’s creditors agreed in favour of a company voluntary arrangement (CVA).
Last week, The Courier reported that the outlet the Wellgate’s flagship department store was facing possible closure unless the rate of rent on the property was reduced.
That raised fears that its demise could also threaten the future of the centre itself.
The Dundee branch was placed on a list of potential stores that might be closed by BHS last year and the loss of the site would be a major blow for the city centre.
As part of the CVA deal revealed yesterday, BHS Limited is looking to reduce the amount of rent they are paying in some stores by as much as 75%.
The chain was unable to confirm if their Dundee store is seeking such a drastic level of reduction at this time.
They said that almost all of their creditors and landlords had voted in favour of its CVA, which aims to revive the ailing business by cutting costs and preventing widespread store closures.
A spokesperson for BHS said the company was unable to comment on individual stores, but that the CVA was a “very positive” step forward.
BHS looked to reassure staff and shareholders and said the backing of the agreement would ensure the future of the group.
Chief executive Darren Topp said the move would “safeguard” the group’s future and that the right team and right strategy to save BHS was in place.
He added: “The success of the CVA of BHS Limited will enable the business to continue the group-wide updated turnaround plan and safeguard the future of BHS, protecting thousands of UK jobs.
“It is a tough time for retailers across the UK with huge structural challenges faced by all, however, we have a very credible plan to return BHS to growth and profitability and a revitalised British Home Stores will emerge as we accelerate our turnaround plans.
“It has been a challenging time during the CVA process and we would like to thank our suppliers, colleagues and customers for their patience and support.”
British Home Stores was founded in 1928 and has been operating in Dundee for more than three decades.
Operators of the Wellgate declined to comment.