BHS Group Ltd v Retail Acquisitions Ltd

BHS Group Ltd v Retail Acquisitions Ltd

Retail Acquisitions Limited is both cash-flow and balance sheet insolvent as it is unable to pay its debts as they fall due and its assets are less than its liabilities. The loan agreement prohibits set-off, no valid variation or cross-claim exists, and the assets relied upon by RAL are either not present assets, speculative, or of nominal value. The petitioner has discharged the burden of proof for insolvency.

Parties
Petitioner: BHS Group Limited (in administration); Respondent: Retail Acquisitions Limited; Supporting Creditor: Arcadia Group Limited
Jurisdiction
England and Wales
Judgment Date
05 May 2017
Procedural Posture
Winding Up Petition / Judgment on Petition
Outcome
winding up order granted
Legal Topics
Winding Up, Cash Flow Insolvency, Balance Sheet Insolvency, Set Off, Valuation of Assets, Cross Claims
Insolvency Company Law Winding Up Cash Flow Insolvency Balance Sheet Insolvency Set Off Valuation of Assets Cross Claims

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 10 Party arguments 2 Amounts and remedies 6
Sign in to unlock

Parties

BHS Group Limited (in administration)

Petitioner

Retail Acquisitions Limited

Respondent

Arcadia Group Limited

Supporting Creditor

Procedural Posture

Winding Up Petition / Judgment on Petition

Legal Issues

  1. 1 Whether Retail Acquisitions Limited is unable to pay its debts as they fall due (cash-flow insolvency)
  2. 2 Whether Retail Acquisitions Limited's assets are less than its liabilities (balance sheet insolvency)
  3. 3 Whether set-off is available against the petition debt

Ratio Decidendi

Retail Acquisitions Limited is both cash-flow and balance sheet insolvent as it is unable to pay its debts as they fall due and its assets are less than its liabilities. The loan agreement prohibits set-off, no valid variation or cross-claim exists, and the assets relied upon by RAL are either not present assets, speculative, or of nominal value. The petitioner has discharged the burden of proof for insolvency.

Court Disposition

winding up order granted

Orders

  • Retail Acquisitions Limited is wound up.