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IT’S ‘business as normal’ in Bahrain for one the UK’s best-known department stores which is facing a traumatic time in its home country and an inquiry into its collapse.
BHS was placed into administration, a form of creditor protection, by owner Retail Acquisitions on April 25, putting the 88-year-old retailer at risk of disappearing from British shopping streets and jeopardising 11,000 jobs.
Topshop-owner Sir Philip Green owned BHS for 15 years before selling it to Retail Acquisitions, a collection of little-known investors, for a nominal sum of one pound in March last year.
Jawad Business Group has had a ‘strong and successful partnership’ with BHS in Bahrain since the 1980s with stores now at City Centre Bahrain, Seef Mall and The Centre Nuwaidrat. Tommy Johnson, general manager of its fashion division, said: “After 32 years of operation we now operate three outlets.
“BHS department stores have long been known for providing a ‘one-stop fashion shop’ for the whole family and despite the recent news regarding its financial troubles and resulting administration in the UK it is ‘business as usual’ here in Bahrain.
“As the reports indicate, BHS administrators (Duff and Phelps) are in advanced talks with several prospective buyers and although these talks are not without risk, the administrators are confident that they can find a solution that keeps this great British retailer on the UK high streets and operating globally.”
Given that BHS has a huge pension deficit, the UK pensions regulator is probing whether the retailer’s previous owners sought to avoid their obligations.
Frank Field, who chairs the UK parliament’s Work and Pensions Committee, said a panel of financial assessors was being assembled to assist with the inquiry.
British businessman Sir Philip, the chairman of the Arcadia Group which includes Topshop, Topman, Wallis, Evans, Burton, Miss Selfridge, Dorothy Perkins and Outfit, has in principle agreed to attend a hearing on June 15, but has called for MP Field to step down from the committee, claiming he is prejudiced.
Sir Philip had bought BHS for 200 million pounds in 2000 and when it was profitable paid out several hundreds of millions of pounds of dividends to his family, it has been reported.
BHS is also being investigated by Britain’s Insolvency Service.
The news comes as it emerged that ex-England cricketer Phil Tufnell’s brother Greg is leading a bid to rescue the chain, backed by a wealthy Portuguese family.
Since it was first established in 1928 as British Home Stores it has been a major player in the retail market, catering for the family and the home with a wide range of products.
With 180 stores serving every major city in the UK, BHS has also made a strong international presence and has 270 stores worldwide.
Its Seef Mall outlet witnessed a steady flow of customers last week attracted by a sale offering up to 70 per cent off selected items.
