• New BHS owner set to be named this week
  • Administrators are preparing a high court complaint against Dominic Chappell
  • Investigation begins today into those instrumental to the sale of the business in 2015

Administrators plan to reveal BHS’s new owner this week while preparing a High Court complaint against its former owner Dominic Chappell.

A bid by Matalan founder John Hargreaves, who has joined forces with Select Fashions owner Cafer Mahiroglu, is understood to have gazumped rival offers from Sports Direct tycoon Mike Ashley, Edinburgh Woollen Mill owner Philip Day and Poundstretcher owner Aziz Tayub, who emerged as a shock bidder last week.

Administrator Duff & Phelps is also thought to have lined up a trio of liquidators amid reports that offers for the 88-year-old retailer have fallen short of their valuation, despite asking suitors to increase their bids.

It is hoped that a bidder will take on the beleaguered department store chain in its entirety, City AM reported, in order to safeguard the thousands of jobs currently at risk, but it is still possible that BHS and its 164 stores could be sold piece by piece.

Duff & Phelps is also expected to launch a High Court suit against Chappell this week, arguing that the chain’s former owner has not co-operated with its investigation.

As revealed by Retail Week, BHS tumbled into administration in April. Chappell’s business, Retail Acquisitions, bought BHS from Sir Philip Green in March 2015 for a nominal £1.

In parliamentary committee hearings beginning today, Work and Pensions Committee chair Frank Field will investigate the advisers who were instrumental to this sale.

This will include a probe into Goldman Sachs, which reportedly provided free, informal advice to Green’s Taveta Investments over the sale of the retailer. Goldman Sachs’ co-head of EMEA investment banking services Anthony Gutman has been called to give evidence.

 

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BHS administration: Timeline plots the demise of a retail giant