It doesn’t come as a surprise that Sir Philip Green, who owns Arcadia Group, wants to sell BHS, but the question is, will there be a buyer? In a difficult environment for British retailers, with cut throat competition, some analysts, according to the Independent, are skeptical about an outright sale of BHS.
While Sir Philip Green seemed to have had the Midas touch at some point in the past, and BHS made him “the fastest paper billionaire in history, ” according to James Moore of the Independent, the glory days for BHS are over. Just as it can’t seem to mark down its merchandise low enough to move inventory, so it is also unlikely that any price will be low enough to attract a buyer, but it is more likely to sell off individual stores to supermarkets and department store chains.
Honor Westnedge, senior retail analyst at Verdict Research, said, “BHS has lacked differentiation. It used to be the go-to place for affordable clothing and homeware, but there are better, cheaper specialists now.” Neil Saunders, managing director at consultancy Conlumino added, “It is not the most fashionable, the cheapest or the most cutting edge. Without Philip Green’s influence and other brands, it risks becoming another C&A. I doubt someone else will make a success of it.”