The high court has approved the appointment of two more administrators to investigate affairs of collapsed retailer BHS and identify possible claims against current and former directors.
Justice Birss made an order appointing “concurrent” administrators to the retail chain, following an application which he said had the “overwhelming support” of creditors.
He said that the objective was for the original administrators, Philip Duffy and Benjamin Wiles of Duff & Phelps, to continue to trade the business in administration – albeit with a view to concluding trading activities – and realise assets to obtain the best return for creditors. Meanwhile, the new administrators – Geoffrey Rowley and Anthony Wright of FRP Advisory – can “commence concurrent investigatory work into the company’s affairs”.
He added: “The reason the appointment is in the best interests of the company is because it will enable an investigation into possible claims it may be entitled to bring against former directors of the company in the most timely and efficient manner. The same goes for possible claims against current directors.
“Real progress will be able to be made in these investigations before the company enters into liquidation at which time the concurrent administrators will be appointed as joint liquidators.”
This, he said, would have the “significant benefit” of delaying BHS’ entry into liquidation so that the company is able to conclude its trading in the administration.
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