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| Sir Philip Green sells BHS to Retail Acquisitions 'for £1' | Sir Philip Green sells BHS to Retail Acquisitions 'for £1' |
| (35 minutes later) | |
| Sir Philip Green has sold department store chain BHS to an investment vehicle Retail Acquisitions Ltd. | Sir Philip Green has sold department store chain BHS to an investment vehicle Retail Acquisitions Ltd. |
| The BBC understands the asking price for BHS was as low as £1. | The BBC understands the asking price for BHS was as low as £1. |
| BHS was part of the Arcadia Group, controlled by Sir Philip, which still includes TopShop, Burton and Evans. | BHS was part of the Arcadia Group, controlled by Sir Philip, which still includes TopShop, Burton and Evans. |
| The company was sold debt free, but one of the issues hampering deals has been the losses made by the chain. In 2013, it lost £69.6m on £675.7m of sales, down 3.5% on the previous year. | The company was sold debt free, but one of the issues hampering deals has been the losses made by the chain. In 2013, it lost £69.6m on £675.7m of sales, down 3.5% on the previous year. |
| Founded in 1928 in London's Brixton, BHS has 180 stores and employs almost 12,000 staff. | Founded in 1928 in London's Brixton, BHS has 180 stores and employs almost 12,000 staff. |
| Control of BHS will pass over today, Arcadia Group said in a statement. | Control of BHS will pass over today, Arcadia Group said in a statement. |
| Sir Philip says: "I am pleased that we have found a buyer in Retail Acquisitions Ltd who wants to develop the BHS brand. | Sir Philip says: "I am pleased that we have found a buyer in Retail Acquisitions Ltd who wants to develop the BHS brand. |
| "Having acquired the business nearly 15 years ago in May 2000, one of my clear objectives in identifying a purchaser was ensuring their desire to take the business forward." | "Having acquired the business nearly 15 years ago in May 2000, one of my clear objectives in identifying a purchaser was ensuring their desire to take the business forward." |
| Retail Acquisitions Ltd was set up last year to try to push through this deal, but may look to make more acquisitions in the future. The firm is backed by a number of investors including brokers and lawyers. | |
| Safeguard | Safeguard |
| The firm plans to keep the BHS management structure in place, and will appoint a new chairman in due course. | The firm plans to keep the BHS management structure in place, and will appoint a new chairman in due course. |
| BBC Business editor Kamal Ahmed understands that former Thomas Cook chief executive Harriet Green was approached to be the new BHS chair, but has declined the offer. | BBC Business editor Kamal Ahmed understands that former Thomas Cook chief executive Harriet Green was approached to be the new BHS chair, but has declined the offer. |
| "The question for the new owners of BHS - and they are a pretty obscure bunch for the moment - is whether they can breathe new life into what has become a pretty dowdy constituent of the high street," he added. | "The question for the new owners of BHS - and they are a pretty obscure bunch for the moment - is whether they can breathe new life into what has become a pretty dowdy constituent of the high street," he added. |
| Keith Smith, the chairman of Retail Acquisitions Ltd, said: "This is a fantastic opportunity to breathe new life into this iconic British high street brand. | Keith Smith, the chairman of Retail Acquisitions Ltd, said: "This is a fantastic opportunity to breathe new life into this iconic British high street brand. |
| "We are convinced that with strategic and focussed support we will return BHS to profitability, and safeguard the workforce." | "We are convinced that with strategic and focussed support we will return BHS to profitability, and safeguard the workforce." |
| Mr Smith is a former director at former City finance house Nabarro Wells. | Mr Smith is a former director at former City finance house Nabarro Wells. |
| Joshua Raymond, chief market strategist at broker City Index, said Retail Acquisitions Ltd faces a "monumental" challenge in trying to turn around the fortunes of BHS. | Joshua Raymond, chief market strategist at broker City Index, said Retail Acquisitions Ltd faces a "monumental" challenge in trying to turn around the fortunes of BHS. |
| "[Sir Philip] Green has been looking to sell the loss-making BHS business for years and now he has found a buyer, he can finally draw a line in the sand." | "[Sir Philip] Green has been looking to sell the loss-making BHS business for years and now he has found a buyer, he can finally draw a line in the sand." |
| "BHS has struggled to adapt to the digital age and increasing competition on the high street," Mr Raymond added. "The challenge Retail Acquisitions now faces is monumental." | "BHS has struggled to adapt to the digital age and increasing competition on the high street," Mr Raymond added. "The challenge Retail Acquisitions now faces is monumental." |
| Retail analyst Richard Hyman, of the richardtalksretail website, said that the decision to sell "will have been as close to painful for [Sir] Philip as any business decision will ever be". | Retail analyst Richard Hyman, of the richardtalksretail website, said that the decision to sell "will have been as close to painful for [Sir] Philip as any business decision will ever be". |
| "His purchase of the brand was a master stroke. | "His purchase of the brand was a master stroke. |
| "He saw value and restructuring potential which allowed him to go on and buy Arcadia and try to buy M&S too," Mr Hyman said. | "He saw value and restructuring potential which allowed him to go on and buy Arcadia and try to buy M&S too," Mr Hyman said. |
| He added that BHS has a £100m pension liability. | He added that BHS has a £100m pension liability. |