BHS sold for £1
Investment firm Retail Acquisitions buys chain.
By Christina Williams
13 March 2015
British department store BHS has been sold for £1 in a deal completed by Sir Philip Green yesterday. The low price paid by investment firm Retail Acquisitions reflects the losses that the chain has made in recent years, although the company was sold debt-free to its new owners.
Sir Philip Green said that he now felt the store was in the right hands to progress in a tough retail climate.
“I am pleased that we have found a buyer in Retail Acquisitions who wants to develop the BHS brand,” he says. “Having acquired the business nearly 15 years ago in Mar 2000, one of my clear objectives in identifying a purchaser was ensuring their desire to take the business forward.”
Industry experts have, however, warned that the store’s new owners now face a challenge in turning around the fortunes of the ailing store.
“BHS has struggled to adapt to the digital age and increasing competition on the high street,” says Joshua Raymond, chief market strategist at broker City Index. “The challenge now faced by Retail Acquisitions is monumental.”
The management structure at BHS will remain in place for the time being, while a new chairperson will be appointed in due course. Founded in London in 1928, BHS has 180 stores nationwide and employs almost 12,000 staff.
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