LONDON — Arcadia Group and BHS creditors have reached a deal, FRP Advisory confirmed on Friday.
“The liquidators of SHB Realisations Limited reached an agreement with Arcadia Group Limited in relation to a number of matters, including Arcadia’s floating charge dated 14 April 2015,” said a spokesman from FRP Advisory. “We can confirm that as part of the agreement, over 30 million pounds was released from reserves held in relation to Arcadia’s secured claim into the monies available for BHSL’s unsecured creditors and the floating charge is to be released.”
Philip Green’s retail group Arcadia is to pay 30 million pounds to the department store’s unsecured creditors following the collapse of BHS last year. The claim is partially tied to a 35 million pound floating charge by Arcadia in 2015.
Earlier this month, SHB Realisations — the holding company name operated by BHS in liquidation — which is under FRP Advisory, filed a claim in High Court against Arcadia.
Following BHS’ collapse into administration, Duff & Phelps was tasked to handle. FRP Advisory, which was appointed as joint administrator in July, eventually became the liquidator of BHS.
Green was responsible to pay 363 million pounds to the BHS pension scheme, which had a 541 million pound deficit during the collapse into administration. Green’s sale of BHS and its subsequent failure were a source of huge controversy in the U.K. and led to parliamentary hearings at which Green had to testify, primarily focused on the pension scheme.
Arcadia declined to comment.