Turkish Businessman to Save British Home Stores

May 17, 2016
Written by Admin TOA
Published in Latest

Businessman Cafer Mahiroğlu has applied to purchase the 88-year-old British Home Stores (BHS), one of the largest retail companies, which went into administration two weeks ago after BHS owner Dominic Chappell announced on April 24 that the retail chain failed to provide the required financing. BHS, which has occupied the British and European media for days, was transferred to a trustee when it became financially unmanageable in late April. Thousands of people will be made redundant if the company goes bankrupt, which has also raised questions in the British Parliament. With a crisis in the steel industry in recent weeks, the possibility has emerged that thousands of employees might lose their jobs.

Two finalist bidders, Mahiroğlu and IKEA, will compete to purchase BHS, which will be sold through a sealed-bid tender. Previously, 30 bidding companies were eliminated. Mahiroğlu's potential purchase of BHS is expected to boost the sectors of Turkish ready-made clothing, home textiles and furniture. In addition to contributions to employment and exports, BHS will play a major role in promoting Turkish brands to the world if purchased by Mahiroğlu.

BHS employs 11,000 people in 164 stores, most of which are in European countries. The total size of its closed stores is 8 million square meters. The company has 1.3 billion pounds ($1.87 billion) in debt and 571 million pounds of pension deficit. Previously, Mahiroğlu purchased British women's clothing giant Select and saved it from a financial bankruptcy in 2007. Mahiroğlu is known as the most successful Turkish entrepreneur in the United Kingdom as he turned Select, which has more than 200 stores across the U.K., into a Turkish brand.(Daily Sabah)

Last modified onSaturday, 06 May 2017 10:07

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