BHS sold for £1 – Sir Philip Green announces disposal of loss-making chain. Retail tycoon Sir Philip Green has finally washed his hands of BHS, selling the troubled fashion and homewares chain to a little-known group of City investors for £1.
The token sale price reflects the struggles of a high street stalwart that has been hit by competition from more fashionable alternatives such as Primark and H&M. BHS has lost almost 800,000 shoppers in the past five years and been overtaken by John Lewis, TK Maxx and Sainsbury’s in the rankings of Britain’s largest fashion outlets. It has been leaking profits too, posting a loss of £70m last year. BHS is among the venerable British retail brands such as Marks & Spencer and Tesco that have struggled with a combination of aggressive newcomers – from Zara to Aldi – and the shifting tastes of shoppers. One expert said the store chain had failed to keep up with its increasingly fashion-conscious customer base.
“Bhs is still performing well among its traditional customers, those aged 55 and over. BHS collapse: Timeline of department store’s rise and fall. BHS representatives have confirmed that the department store chain will go into administraton today after sources admitted that "things don't look good".
Here is a timeline of the high street store’s 88-year history. 1928: First store opens A group of American entrepreneurs founded BHS in 1928 and modelled their first London stores on budget retail chain Woolworths. The first store opened in Brixton with no items priced at more than one shilling. The price ceiling was raised to five shillings a year later. The retail chain went public in 1933. 1960s: Expansion of BHS After the Second World War, the retailer started to focus less on price but more on offering quality and value for money. Retailer BHS Goes Into Administration. High street chain BHS has gone into administration, putting 11,000 jobs at risk and threatening the closure of up to 164 stores.
In a statement, administrators Duff & Phelps said the group will "continue to trade as usual" while a buyer is sought. The collapse is the biggest retail failure since Woolworths folded in 2008 with the loss of almost 30,000 jobs. The owner of BHS, Dominic Chappell, said "no one is to blame" for the retailer's failure, and said he would continue to work with the administrators to "find a solution". :: Analysis: BHS Collapse Was Painfully Inevitable In a statement, Duff & Phelps said: "The group (BHS) has been undergoing restructuring and, as has been widely reported, the shareholders have been in negotiations to find a buyer for the business.
"These negotiations have been unsuccessful. "In addition property sales have not materialised as expected in both number and value. BHS to be wound down as rescue attempt fails. Department store BHS will be wound down with the loss of up to 11,000 jobs after efforts to find a buyer failed.
The decision followed a lengthy bidding process aimed at saving BHS, which went into administration in April. But none of the offers was judged acceptable by administrators Duff & Phelps, which blamed "seismic shifts" in the retail sector for the collapse of the chain. The reasons why BHS failed. AS BHS was placed into administration in the most significant high street insolvency since Woolworths, Financial Director takes a look at the factors that led to its collapse.
Its offering “It’s not stylish enough. You can’t go wrong, but you can’t go right either,” one shopper in Bromley told BBC Radio 4’s Today programme of BHS earlier this week (25 April). “It’s old-fashioned and out-of-date,” said another. That assessment is borne out in the stats, too. Not only that, but the perception among shoppers is that rivals Primark, New Look and H&M offer greater fashion value as well as the basics, while the likes of TK Maxx, M&S and Debenhams – which has have been far from problem-free themselves – offer more aspirational products at affordable prices. Its estate The estate of 164 UK stores the 88-year-old retailer has compare rather poorly to those of its competitors. Its enormous pension deficit Its debt BHS’s financial woes do not end there. How Britain fell out of love with BHS – timeline.
A group of American entrepreneurs opens a general store in Brixton with the aim of creating a UK version of Woolworths.
Nothing is priced at more than a shilling, although the price bar rises to five shillings the following year as British Home Stores moves into home furnishings. BHS makes its debut on the London Stock Exchange. BHS teams up with Sainsbury’s to create SavaCentre hypermarkets, opening the first store in Washington, Tyne and Wear. BHS is now pureplay ecommerce: Will loyal customers move online? I can’t say I was surprised when British Home Stores went into administration earlier this year.
It was a high street staple, yet a lack of innovation meant it was never going to compete with digitally-focused competitors like Debenhams and House of Fraser. Just months after its stores closed, it has returned in an online-only format. So, will it work as an ecommerce brand? BHS to launch online a month after last store closed. BHS is poised to make a comeback as an online retailer just one month after the brand closed its last remaining high-street store.
The business will be relaunched on Thursday, selling lighting and home furnishing products before adding clothing lines and kitchen and dining ranges over the coming weeks. BHS collapsed into administration in April, leading to the loss of about 11,000 jobs and leaving a pension deficit of £571m. BHS.com will be a smaller operation, with just 84 employees based in London and fewer products initially on offer. It will focus on former BHS best-sellers, such as bedding and lighting, and by November new clothing ranges will be available. The online business is owned by the Al Mana Group, a Qatari conglomerate that created BHS International when it bought the BHS brand, BHS.com and the retailer’s international operations in June.