• Home
  • News
  • Business
  • BHS inches closer to selling off Oxford Street flagship store

BHS inches closer to selling off Oxford Street flagship store

By Vivian Hendriksz

loading...

Scroll down to read more

Business

Struggling department store group BHS is said to be close to selling the 45 year lease on its famous Oxford Street flagship store to the royal family of Abu Dhabi.

News of the potential sale comes a week after the department store group’s owners, Retail Acquisitions, secured approval for a company voluntary agreement, which would see its rent cut on a number of locations in its retail portfolio.

BHS is reportedly very near to finalising a 55 million pounds deal with Lancer Property Asset Management, who are working for the royal family, according to The Sunday Times. The property group currently owns the freehold of the location and aims to renovate the entire block in the near future, including the London College of Fashion. The Sunday Times stated that negotiations between the two have “accelerated” and a deal concerning the lease of the location could be announced as soon as end of this week.

In addition to closing in on a deal for its Oxford Street flagship store, BHS is currently in the midst of securing a 60 million pound loan from US investment firm Gordon Brothers, as the department store group aims to raise an additional 100 million pounds to fund its turnaround scheme. The British retailer is still fighting to secure funds to fill its pension deficit of 571 million pounds, and may sign a agreement with the state-back Pension Protection Fund (PPF) in exchange for a 33 percent stake in the chain.

BHS
Mergers and acquisitions
oxford street flagship store