BHS documents reveal full extent of decline as losses widen

The department store group reported a pre-tax loss of £85.1m in the final year under Sir Philip Green’s Arcadia, which sold the struggling chain to Retail Acquisitions in March.

That compared with a £69.6m loss in the year prior.

Pre-tax losses before exceptional items widened from £59.4m in 2013 to £63.5m in 2014.

The net deficit of the BHS pension scheme also grew, from £109.2m in 2013 to £111.1m in 2014.

Operating losses ballooned from £60.5m in 2013 to £76.9m in 2014 and turnover was down from £675.7m to £668m.

Turnaround plan

New BHS owners and chief executive officer Darren Topp plan to turn the business around by focusing on revamping stores and introducing concessions.

Topp declined to comment on the figures but told Retail Week: “The entire management team is excited at the progress made in implementing our turnaround plan which aims to return BHS to its rightful place as an iconic brand on Britain’s High Streets.

“We recognise that delivering this plan will take time. But we are already seeing benefits and we expect these to accelerate in the coming years.”

Speaking to Retail Week last month Topp said BHS had signed a deal with Claire’s Accessories to trial six concessions in stores to complement its pre-teen clothing range.

The 400 sq ft Claire’s Accessories concessions will launch this month and will be tested for a five-week period, with plans to have a dozen concessions before Christmas.

BHS has also signed a deal with Debenhams to provide lighting concessions in the department store. By the end of the summer it will trial its lighting offering in the Guildford and Oxford Debenhams stores, which will receive a commission of sales in return for the concessions space, which will feature a BHS employee.

The department store has also signed a deal with food wholesaler Booker Group to help expand its convenience food offering to a further 20 stores.