The disposal of BHS cost Arcadia Group £310.9m last year, new documents have shown.
BHS on Oxford Street
Arcadia Group parent company Taveta Investments sold the struggling department store to Dominic Chappell’s consortium Retail Acquisitions in March 2015.
Documents filed to Companies House today detailing Arcadia’s financial results for the year to August 29 2015 show it wrote off £216.8m of debt owed by BHS.It was also charged £58.5m for provisions relating to the disposal of the retailer.
Arcadia transferred £23.7m in cash to BHS at the point of sale and later transferred a further £6.5m.
It also incurred damage costs related to system developments previously used by BHS of £3.1m. The cash costs of the disposal totalled £2.3m.
Arcadia’s operating income for the year included £26.9m relating to a service charge shared with BHS up until its sale. Arcadia charged the retailer for shared services including logistics, finance, IT, HR and tax and Treasury.
The inquiry into the sale of BHS by the work and pensions select committee continues next Wednesday (June 15), when Arcadia Group owner Sir Philip Green will answer MPs’ questions.