Bought for £1, BHS now set to undergo unprofitable store cull
2 min read
18 March 2015
Having been sold by Top Shop owner Philip Green in early March, British Homes Stores (BHS) is set to close up to 50 stores around the UK.
Retail Acquisitions snapped up BHS from Phillip Green’s Acradia Group on 12 March after it lost hundreds of thousands of shoppers during the last half decade – 15 years after Green paid £200m for the business from Storehouse.
In an effort to bring BHS back to profitability, after losses in 2013 amounted to £70m and a pension deficit swelled to £100m, Retail Acquisitions will be examining locations in cities including Bristol, Cardiff and Manchester.
BHS currently has 171 stores employing 11,000 people. It previously sold sites to TK Maxx and Primark, two parties which are expected to show interest in light of the new closure plan.
In a statement, Retail Acquisitions said: “Property consultants have been appointed, but this does not mean that any leases that may be under review will be sold, and certainly does not mean that store closure is the only option.”
Jackson Criss, Charles Palmer Property and Vail Williams have all been appointed as agents to determine what the best route forward is.
Read more about BHS:
Prior BHS chief operating officer was promoted to interim chief executive on 18 March, charged with leading the short-term turnaround of the business. Richard Price had stepped down from the chief executive role after nearly three years, and is set to kale up a role with Tesco clothing brand F&F.
New owner Retail Acquisitions is led by ex-facing Drier Dominic Chappell and former broker Keith Smith.