Matalan founder, John Hargreaves, linked to BHS rescue bid

The bidding war for BHS continues on as Yousuf Bhailok, property millionaire, has exited the bidding battle to take over collapsed high street chain BHS, clearing the way for John Hargreaves, founder of Matalan, to make his ‘mystery bid’ for the retailer.

Hargreaves, who left school to found the discount retailer Matalan in 1985, is understood to be working with a rival retailer ahead of the administrators final deadline on Tuesday, according to the Telegraph. News of Hargreaves interest in BHS comes after the Preston-based millionaire Bhailok is said to have withdrawn his bid for BHS, when administrators Duff & Phelps stressed he would have to take over BHS entire 164 UK store portfolio, including the 40 loss-making locations.

The administrators are said to be quite “bullish” in their search for a potential buyer for BHS and are understood to have told interested parties to increase their bids for BHS as they must take over it entire store network as well its debt liabilities. “Caution has to be exercised in light of certain risk factors as far as the overall level of the bid,” said Bhailok to the Telegraph on his bid withdrawal. “We believe we have to keep within our parameters if we were to successfully revive the vast majority of the operation."

The founder of Matalan link to BHS comes as the discount fashion and homeware retailer continues to battle with declining sales. Although Hargreaves is said to remain a wealthy man, with a net worth of approximately 1 billion pounds according to the Sunday Times Rich List, the successful bidder who have to taken on the entirety of BHS’ 85 million pounds debt. Other bidders for BHS are said to include Philip Day, the chief executive of the Edinburgh Woolen Mill, and Mike Ashley, billionaire and owner of Sports Direct.

Photos: Matalan, Facebook