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BhS Chief Executive Leaves Days After £1 Sale

The chief executive of BhS has left the business just days after it was sold by the high street tycoon Sir Philip Green for a token £1.

Sky News understands that Richard Price, who had resigned prior to last week's deal but was expected to stay on to assist with the transition to the new owners, has already vacated his role.

Retail Acquisitions, the newly formed vehicle which last week took control of BhS, told staff on Monday that Mr Price had departed and that Darren Topp, the chief operating officer, would take over as interim chief executive, according to an insider.

Mr Topp, a former Marks & Spencer (Other OTC: MAKSF - news) employee, has been at BhS for six years.

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Thursday's long-awaited deal for Sir Philip to offload BhS came nearly 15 years after he bought it, and saw around 11,000 staff being handed over to a new employer.

BhS, which trades from 171 stores, has struggled in recent years, making a string of substantial losses amid intense price competition from rivals.

Reports at the weekend suggested that the chain's pension deficit was expected to be much larger than the previously reported figure of £100m.

In a statement last week, Sir Philip said: “I am pleased that we have found a buyer in Retail Acquisitions Ltd who wants to develop the BHS brand.

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

The tycoon, who controls brands such as Topshop and Dorothy Perkins, said he was "confident that Retail Acquisitions Limited have a platform to grow the business and return it to profitability".

The new vehicle involves a group of little-known City executives, including Keith Smith, its chairman, Dominic Chappell, a former racing driver, and Eddie Parladorio, a lawyer who has acted for celebrities including Ulrika Jonsson.

Sir Philip and Retail Acquisitions declined to disclose the value of the deal, although BhS's pension liabilities and the poor trading performance of the business would have been important factors in agreeing the transaction.

Mr Smith said: “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"

He added that a new chairman "with significant retail experience and further retail turnaround experts (will be appointed) in due course".

Harriet Green, the former boss of Thomas Cook (Xetra: A0MR3W - news) , was approached about the role but turned it down.