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BHS close to subletting Oxford Street flagship

BHS is reportedly nearing a deal to sublet its Oxford Street flagship to two other retailers, in a deal worth tens of millions of pounds.

The struggling retail chain, which was offloaded by Arcadia’s Sir Philip Green in March for £1, will let the front half of the shop to fashion retailer Reserved, run by Polish conglomerate LPP, according to The Sunday Times.

The business is in talks with Swedish furniture firm Ikea about striking a deal for the back of the shop.

BHS, which is advised by property agency Cushman & Wakefield, would take the first floor of the building as a head office if sublettings go ahead.

According to a brochure circulated to potential buyers the leasehold would be worth between £81.3m and £8.8m if the store was split into separate units and sublet.

In June, Dominic Chappell who led the BHS buyout, claimed the shop was losing £1m a year.

LPP owns five clothing brands – Reserved, Cropp, House, Mohito and Sinsay. In 2014 the company opened its first German store for Reserved which it said was the “first stage of its global expansion.” It now has 12 shops in Germany. The business said it is planning to open flagship stores in other European cities including Paris, Milan and London over the next four years.

Fast fashion brand Reserved stocks menswear, womenswear and kidswear with prices starting at £5 for a t-shirt and ranging up to £60 for a parka coat.

Worldwide LPP has 1400 shops and has an annual turnover in excess of £700m.  

 

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