Sir Philip Green offloads Bhs to Retail Acquisitions

Biting the bullet: Sir Philip Green has agreed to sell the Bhs retail chain for undisclosed sum to Retail Acquisitions, a newly created investment vehicle, disaggregating his Arcadia Group fashion empire and offloading the loss making retailer. In a statement published earlier Thursday morning, Sir Green announced that he had transferred control of the Bhs Group to the firm, which aims to purchase more high street retailers, effective as of today.

"I am pleased that we have found a buyer in Retail Acquisitions Ltd who wants to develop the Bhs brand," said billionaire Sir Green. "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. "The announcement comes weeks after the bidding race for the high street chain begun, with the recently established firm, led by former City Banker Keith Smith, making the winning bid.

Sir Philip Green sells Bhs

Sir Green previously hinting at his intentions of selling off the struggling retailer earlier this year, which had been dragging down the growth of the group's other labels, which include Topshop, Wallis and Dorothy Perkins. Few details concerning the deal were released, although according to Companies House, Retail Acquisitions was created last November and until recently went under the name Swiss Rock Ventures. The firm aims to keep the current Bhs management team in place, but plans on hiring a veteran to come on board as Bh's new chairman as well as additional board members.

"Bhs has a strong portfolio of 171 store sites throughout the UK, significant assets, long-standing and loyal suppliers and great international franchise partners," added Sir Green. "I am deeply proud of the work ethic displayed by the very many people I have worked with for so long at Bhs, both within our Head Office and across the stores. I would also like to thank the very many loyal and dedicated customers who shop with BHS, visit our cafes and use our website on a regular basis, and hope that they will continue to do so."

Kevin Smith, one of the five directors at Retail Acquisitions added: "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. By backing the existing management and investing in their plan, we are confident that we can build upon many of the initiatives already in place."

"In addition, Retail Acquisitions Ltd will appoint a Bhs chairman with significant retail experience and further retail turnaround experts in due course." A spokesperson noted that the firm has no plans for any store closures the the moment. The Bhs Group, originally known as the British Home, was founded in 1928, Brixton, south London by a group of American entrepreneurs.