Re: High Street chain collapse sweepstake
Posted: Fri 13 Mar, 2015 21.36
Seems The Telegraph agrees:
Also, having not been in one for years, I didn't realise that some BHS stores do food - including fresh meats, wine and in-store bakery?! Getting into groceries seems to be a weird decision right now.Allister Heath of [url=http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/11468743/TSB-and-BHS-the-strange-world-of-MandA-just-got-stranger.html]The Telegraph[/url] wrote: The other big transaction was Sir Philip Green’s sale of BHS. We knew that this was on the cards – but the deal is one of the most unorthodox that I have ever seen.
The buyer is a vehicle called Retail Acquisitions, set up in November last year and previously called Swiss Rock Ventures; its directors are led by Keith Smith, a retired City small-cap broker, and include a lawyer to celebrities and other individuals unknown to the world of retail or to the City. It is believed that two wealthy individuals are backing the business; they may be better known, but they have chosen to remain anonymous.
Sir Philip is rightly proud of what he has achieved with his retail businesses, and he undoubtedly chose the buyer of BHS carefully. The company is being sold with a cash pile and with no debts, though it suffers from a relatively large pension deficit. It is believed to have changed hands for a nominal sum.
But the retail market is tougher than ever and it is an open question whether it will be possible for the new owners to save and rejuvenate BHS. They need to find a new chairman, and fast, and to replace the current managing director, who is moving to Tesco. For the sake of the staff, let us hope they succeed. If they do so, they will have managed to pull off a transformation that eluded even Sir Philip, one of the greatest British retailers of the past 20 years. It’s a pretty huge gamble.