BhS May Remain Led By Green Under New Chair

The former chief executive of Thomas Cook (Xetra: A0MR3W - news) has turned down the chance to take the helm of high street chain BhS following a deal which removed the chain from the ownership of one of Britain's richest tycoons.

Harriet Green, who stepped down from the travel group in acrimonious circumstances last year, had held initial discussions with Retail Acquisitions Ltd, a vehicle established to acquire high street assets, about becoming BhS's chairman.

A spokesman for Ms Green confirmed that she had been approached about the role but said she had decided not to accept it.

Retail Acquisitions is understood to be talking to a number of other candidates about the post as it seeks experienced retailers to guide its turnaround plans.

Thursday's long-awaited deal for Sir Philip Green to offload BhS came nearly 15 years after he bought it, and will see 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.

In a statement, 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".

Retail Acquisitions is backing the existing BhS management team, the statement added.

The new vehicle has been put together by a group of former bankers and lawyers, including Keith Smith, its chairman and little-known individuals whose names include Stephen Bourne, Dominic Chappell, Lennant Henningson, Eddie Parladorio and Mark Tasker, sources said on Thursday.

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.

Reports on Thursday said the chain had changed hands for a token sum of £1.

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".