Matalan founder and Poundstretcher's owner join the bidding for BHS

It has been reported by The Sun that the founder of Matalan, John Hargreaves, has been working with the owner of Select Fashions, Cafer Mahiroglu, on a bid for BHS.

The Sun claims that the duo have created a five-year turnaround plan for the beleaguered retail chain and have £80m to fund it. If successful they are looking to save 120-130 stores and around 11,000 jobs, with the ultimate aim of making BHS “young and relevant again”.

Restructuring specialist Hilco Capital is thought to still be in the running, also in the running, as is the owner of Edinburgh Woollen Mill and Peacocks, Philip Day.

Aziz Tayub, owner of Crown Crest - Poundstretcher’s parent company – is also thought to have put an offer forward.

Mike Ashley, owner of Sports Direct, had expressed an interest in the chain but is understood to have been outbid by other interested parties.

Ealier this week The Telegraph revealed that Preston-based property millionaire, Yousuf Bhailok, had also withdrawn his offer after he was advised that a successful bid would involve taking on all 164 stores, including, including those 40 stores operating at a loss.

The deadline for final bids was Tuesday 17th May and it is understood that five key bidders remain in the frame.

Connor Campbell, a senior market analyst at www.spreadex.com, gave us his view:
“Whilst BHS will likely be buoyed by news that Matalan founder John Hargreaves is eyeing a rescue bid with Select Fashions owner Cafer Mahiroglu, it would only be the first on a long and arduous path for the company. BHS arguably needs a complete new direction in order to stably situate itself in the new shopping landscape, something that has been made all the difficult due to the damage done to the brand in light of its recent collapse.”

Image: Martin Good / Shutterstock.com
Source : Insight DIY Team

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