New buyer emerges for troubled BHS

A former executive of troubled British retailer BHS has emerged as a surprise potential buyer of the business from Sir Philip Green’s Arcadia Group.

BHS is the only non-performing unit of Arcadia, its widening losses undermining the results from better known chains Topshop, Miss Selfridge, and Dorothy Perkins. Sir Philip announced in January he was looking at selling after receiving several approaches for the business.

One of those was identified as South African-based Pepkor but that company is believed to have withdrawn from discussions.

According to a report in The Telegraph, a new bid has been prepared by Tony Brown, a former retail director at BHS, who is working with a private equity fund Alteri Investors, in turn backed by Wall Street fund Apollo.

Alteri was launched in late 2014 to specialise in turning around struggling retail business, by Gavin George, who specialising in revamping or winding down failing retailers.

The Telegraph said it understood talks had been ongoing with Alteri and Brown “for some time”, although a deal is likely to still take several weeks and could yet fall apart over price.

BHS has 180 stores and about 12,000 staff.

Last year, Arcadia Group said BHS cash losses rose from £19 million to £21 million in the year to August 30.