BHS sale spells break-up of Philip Green’s empire
SIR PHILIP Green is looking to sell a chunk of the vast retail empire he has built up over the last 15 years after receiving several takeover approaches for the struggling department store group BHS.
Green bought the chain – then known as British Home Stores – for £200m in 2000 from retail conglomerate Storehouse, two years before his £850m takeover of Arcadia Group, which includes Topshop, Burton and Miss Selfridge.
He revived the fortunes over the then-ailing chain, which has around 180 stores across the UK and employs 12,000 staff. However, BHS has struggled since the recession with challenging conditions on the high street and reported a cash loss of £21m in the year to August 2014.
In March last year, Green introduced trial food outlets into BHS stores in a bid to boost footfall and take advantage of the UK’s fast-growing convenience sector. He has also sought to improve BHS’s fashion credentials by revamping its womenswear ranges.
A spokesperson said: “We have had several approaches on BHS over the past few months. It is now the company’s plan to explore whether any of these can be brought to a conclusion.”
Despite its challenges, BHS’s prominence on the high street and its property portfolio including its flagship on Oxford Street make it an attractive target for potential buyers. Nearly 150 BHS stores have permission to sell food and a sale of the retailer could spark interest from supermarkets for some of the sites.
BHS is thought to have attracted interest from South African retail magnate Christo Wiese as well as high street rival Primark. Apollo as well as turnaround firm Hilco are also believed to have looked at the company.
A sale of BHS would leave Green to focus on the more lucrative brands, namely growing Topshop and Topman’s presence overseas. In 2012, Arcadia sold a minority stake in the fashion chain to US private equity firm Leonard Green & Partners to help fund its expansion in the US.