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UK retailer Philip Green offloads BHS to buyout firm

March 12, 2015 at 12:07 pm EDT

LONDON (Reuters) - British retailer Philip Green said on Thursday his struggling department store chain BHS had been acquired by buyout firm Retail Acquisitions.

Billionaire Green, whose family owns the Topshop-to-Dorothy Perkins Arcadia Group, gave no financial details about the deal, after saying in January that several groups had expressed interest in the loss-making chain.

Losses at BHS had widened to 21 million pounds in 2013-14 from 19.3 million pounds the year before, the firm said in November.

"This is a fantastic opportunity to breathe new life into this iconic British high street brand. We are convinced that with strategic and focused support we will return BHS to profitability, and safeguard the workforce," said Keith Smith, the chairman of Retail Acquisitions.

Green bought BHS for 200 million pounds in 2000. The tycoon subsequently acquired Arcadia, owner of the Topshop, Topman, Burton, Dorothy Perkins, Miss Selfridge, Wallis and Evans chains, for 850 million pounds in 2002. He has twice tried and failed to buy Marks & Spencer, Britain's biggest clothing retailer, the latest attempt in 2004.

BHS trades from 171 UK stores and 88 franchise stores internationally. It has a staff of 11,000.

"The business is handed over in a sound financial position with significant cash balances and banking facilities in place," said Green.

"I am confident that Retail Acquisitions have a platform to grow the business and return it to profitability."

Retail Acquisitions said it plans to appoint a chairman with significant retail experience and further retail turnaround experts.

(Reporting by Paul Sandle and James Davey; editing by Kate Holton)

Philip Green

British billionaire Philip Green is known for his commercial success, his unconventionality and for his mordacity. Seventh richest man in Britain, he shares with his wife Christina a fortune of £3.6 billion, according to the Sunday Times.

He leaved the school at 15 years old, and he began to work as shoes importer travelling in United States, Europe and Far East. When he came back in UK, he borrowed £20 000 and he created his first business importing jeans and selling these to retailers in London.

In 1979, Philip Green bought a large stock of clothing at extremely low prices, and he decided to open his own shop.
In 1988 he became Chairman of Amber Day, a retailing company listed on the Stock exchange.

In early 90s, he bought the chain stores Owen Owen and in 1995 Olympus Sports, which he sold three years later to JJB Sports for £ 550 million.
In 1999, he became popular thanks to hostile takeover’s attempt on Marks and Spencer. Acquisition was blocked by board of directors of the most famous British chain stores, for this reason Green changes the victim, British Home Stores (BHS), which he bought in 2000.

Two years later, it was Arcadia Group’s turn, which owned famous brands Burton, Dorothy Perkins, Evans, Miss Selfridge, Outfit, Topshop / Topman and Wallis. Recently also Etam’s chain was acquired by the English businessman.

On 20th October 2005, Green distributed to Arcadia Group’s shareholders dividends of nearly £1.3 billion, and he and his wife (own for 92%) received £1.17 billion, this is the largest dividend ever received by an individual investor in the history of the British company.

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