BHS Given New Hope After It Receives Five Bids

BHS Given New Hope After It Receives Five Bids

BHS has recently received five bids as the submission date for offers is soon to expire.

This news is likely to give hope to employees as the expected buyer is said to save the majority of the 11,000 jobs at risk.

Despite an estimated 50 expressions of interest since the retailer went into administration, the majority of potential buyers are only looking to buy some of the 164 BHS stores, which are still trading despite the collapse. Potential buyers are suggested to be Sports Direct, Edinburgh Woollen Mill, Ikea and discount retailer B&M. One of the prospective buyers has committed to not extracting any money from the retailer for three years if he wins the bid.

It has been announced that 40 of the 164 stores have been put on the red list as they are  making heavy losses, meaning they are unworkable for interested suitors.

Yousuf Bhailok, a property millionaire, confirmed his interest with administrators on Monday and stated that he had been in earlier talks with BHS regarding a takeover just two weeks before the company declared their entry into administration. Bhailok has written to the Government to secure his loan guarantee in order to support the estimated £80m annual operating costs of running BHS.

If successful, Bhailok says he wants to introduce more concessions to help fill surplus space and increase its online sales. He also wants to grow its franchise in the the Middle East since BHS stores in Oman and Qatar are said to be some of the most profitable, according to Bhailok.

Amidst all the trouble of finding a buyer, BHS has also seen the start of two separate investigations into the chain’s collapse, one of which is being run by the Insolvency Service.