The retail billionaire Sir Philip Green is closing down 10 of his BHS department stores after striking a deal with Primark, the fast-growing fashion retailer, to take over the shop leases.
The move is part of a broader shake-up of his property estate, following the decision to merge the 185-strong BHS chain into the rest of his Arcadia retail empire last year.
The 10 BHS stores employ 350 people but the closures will be phased over 12 months to give staff enough time to find new jobs. Staff were told of the decision on Friday night. Those that will close include stores in Harrogate, King’s Lynn, Guildford, Folkestone and Winchester.
Green has been in secret talks with Primark for some time about the deal but it was only finalised last week. The agreement will surprise observers, because the value fashion chain is regarded as a competitor to Green’s other brands, particularly Topshop.
However, Green shrugged off the concerns this weekend, insisting that Topshop was thriving and Primark would generate lots of customer footfall at the stores. “Where there’s footfall there’s business,” he said. Green has known Arthur Ryan, the founder of Primark, for more than 15 years.
The closures form part of a realignment of Green’s retail property estate, which spans more than 10m sq ft. BHS plans to open six new stores — four focused on home products.
As part of his plan to improve BHS performance, Green already showcases the Dorothy Perkins, Evans, Wallis and Burton brands in some BHS stores. He is expected to accelerate that trend in the short term, enabling him to shed between 200 and 300 small Arcadia stores when their leases expire.
Green is also in talks with some supermarkets and food groups about launching a convenience food range at BHS. Of its 185 stores, 153 have planning permission to sell food. He is also considering launching a beauty and cosmetics range.
The plans come a decade after Green bought BHS from Storehouse Group in a £200m deal. It has been a fixture on the British high street for 82 years.
