BHS owner to sell London flagship

It may be housed on one of the most prestigious retail streets in the country, but department store BHS is thought to be losing over 100,000 pounds per month. That would explain why its current owner is looking to raise 89 million pounds in capital by sub-letting the site and then selling its London flagship store.

The long ailing department store group, which was notoriously sold for 1 pound by Sir Philip Green in March, has hired property agency Cushman & Wakefield to explore options for the prime site on Oxford Street, reports The Sunday Times.

According to a brochure circulated to potential buyers, the leasehold would be worth 81.3-88.8 million pounds if the store was split into separate units and sub-let to other retailers.

However, property sources said the most likely buyer was Abu Dhabi’s royal family, which already owns the freehold and is unlikely to pay that much. It is thought to have offered Green 25 million pounds for the site before he sold BHS.

BHS said: “We have said we would explore all options and consider whether the capital employed in parts of our business may be better used elsewhere.”