British BHS Department Lost 7 Consecutive Years Or Will Go Bankrupt

Last year, it was reported that Philip Green Green, who had rushed out of Britain's chain store group BHS at the symbolic 1 pounds, escaped the surprise.

According to the British media,

The new boss, Retail Acquisitions, can not raise enough working capital for it, and BHS has been close to bankruptcy filing. Nearly 11 thousand jobs in British retail are at stake.

BHS has already received large rent reduction from its stores in early March, which has been the largest in the UK.

Sports Direct International PLC PLC (SPD.L) negotiations on the sale of 164 stores are the last straw for BHS.

However, as negotiations broke down last week, BHS has been sentenced to death.

BHS has many properties. Some of them are located in the golden section such as Oxford Street Oxford street. This is the most valuable place for BHS.

A group of American businessmen founded in 1928 British Home Stores (BHS predecessor) is one of the most familiar department stores in Britain.

In 2000, Philip Green bought BHS from Storehouse PLC at 200 million pounds. Two years later, the department store owned Arcadia Group Group of famous British high street brands such as Topshop, Topman and Miss Selfridge.

But BHS has been losing money for 7 consecutive years.

According to statistics, its fiscal 2013 deficit before tax 69 million 900 thousand pounds, total income of 675 million 700 thousand pounds, a decrease of 3.5% over the same period.

The net loss in fiscal year 2014 expanded to 21 million pounds in the previous year's 19 million 200 thousand pounds. Philip Green, in the Arcadia Group Ltd. holding company Taveta Investments Limited2014 annual financial report, pointed out that since the department store industry continued to be difficult, BHS's business has always been a challenge.

Keith Smith, chairman of investment group Retail Acquisitions, said last year that when it bought BHS, she planned to inject 160 million pounds into the department store to help her return to profitability, but Retail Acquisitions's fund-raising process was not smooth.

Mr Dorrell, general manager of Retail Remedy, a retail consultancy at Retail Acquisitions, said BHS could sell its stores one by one, which means BHS, which has nearly 90 years of history, will disappear.

Analysts say BHS has been stagnant since 80s in the last century, and even Next PLC (NXT.L) and Marks and Spencer Group PLC (MKS.L) Martha M&S are in the current severe retail environment.

The competition is strong and the outdated BHS naturally cannot stand.

Now, if buyers are willing to accept BHS, they need to bear a pension gap of up to 571 million, and other debts of more than 700 million.