Ikea may take over BHS sites

Swedish furniture and homewares retailer Ikea is reportedly planning to take over the leases of an undisclosed number of BHS sites in the UK.

Such a move would mark a strategic change of direction for Ikea, propelling it onto High St rather than its traditional trading space of big barns in destination centres outside city CBDs.

The Times newspaper has reported that Ikea has held talks with the administrators of BHS and says if a buyer cannot be found for the entire BHS business it will act.

An Ikea UK and Ireland spokesman, Daniel Lundholm, said: “I can confirm that we have not and will not be bidding to buy the BHS business out of administration. However, we are exploring a number of potential locations across the UK for more order and collection points.”

Ikea has 18 stores in the UK.

Meanwhile, the Daily Mail has reported that BHS’s former owner Retail Acquisitions, run by twice-bankrupt ex-racing driver Dominic Chappell, burnt through more than £100million in 13 months at the company after buying it from Sir Philip Green for £1. The firm’s management battled to block ‘inappropriate’ spending but the company is now in administration putting 11,000 jobs at risk while the Pension Protection Fund is overseeing a £571 million pension deficit.

BHS, founded in 1928, collapsed last month.