BHS snapped up by new Retail Acquisitions vehicle
A new vehicle set up to buy retail assets has acquired loss-making high street clothing retailer BHS from retail magnate Sir Philip Green.
Retail Acquisitions, a private vehicle formed by former Nabarro Wells director Keith Smith, said it would "breathe new life" into what it feels is an iconic British high street brand.
BHS has 171 stores and in the 2013-14 financial year saw its losses widen to £21m from £19.3m the year before, according to the company, with pension liabilities having stood at around £100m in the year to August 31 2013.
Green, who bought BHS in May 2000 and revealed it had been put up for sale in January, said the business was being handed over "in a sound financial position, with significant cash balances and banking facilities in place”.
It is understood that several high net worth investors backing the BHS deal for the longer term, although no names have been revealed, City AM said.
London-based Retail Acquisitions was incorporated in November 2014 and changed its name from Swiss Rock Ventures earlier this month, according to Drapers.
Directors associated with the company are understood to be Lennart David Henningson, Dominic Chappell, Stephen Charles Bourne and Mark Tasker, according to documents filed at Companies House.
Smith, who claims more than three decades of experience working in the City, said: “We are convinced that with strategic and focused support we will return BHS to profitability and safeguard the workforce."
“By backing the existing management and investing in their plan, we are confident that we can build upon many of the initiatives already in place."
“In addition, Retail Acquisitions will appoint a BHS chairman with significant retail experience and further retail turnaround experts in due course.”
The Lombard column in the Financial Times had some fun at Sir Philip's expense with the headline “BHS sale shows that Philip Green is no longer the full Montague Burton”, and observed that “Philip is no longer the titan once plausibly mooted as a bidder for Marks and Spencer”.