16 hours ago | By Alice Gividen
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BHS is exploring plans to raise £89m by sub-letting and then selling its London flagship store.
The struggling department store group, which was sold for £1 by Sir Philip Green in March, has hired property agency Cushman & Wakefield to explore options for the prime site on Oxford Street, reports The Sunday Times.
According to a brochure circulated to potential buyers, the leasehold would be worth £81.3m-£88.8m if the store was split into separate units and sub-let to other retailers.
However, property sources said the most likely buyer was Abu Dhabi’s royal family, which already owns the freehold and is unlikely to pay that much. It is thought to have offered Green £25m for the site before he sold BHS.
In June, Dominic Chappell who led the BHS buyout, claimed the store was losing £1m a year.
BHS said: “We have said we would explore all options and consider whether the capital employed in parts of our business may be better used elsewhere.”
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