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Background

Founded in 1928, BHS was a British department store chain primarily selling clothing and household items. By the time of its closure in 2016, BHS had a total of 164 stores, mainly located in high streets or shopping centres. Following a number of loss-making years, in April 2016, the company entered administration following unsuccessful attempts to turn the business around.

Hilco Capital was appointed by the Administrators to operate a store closure programme and run the stock liquidation process, maximising recoveries to the administration while buyers were sought.

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Hilco Capital’s role

  • Appointed by the Administrators of BHS to operate a store closure programme and run the stock liquidation process across the estate
  • Managed supplier liaison, negotiating settlements and ensuring continuity of supply during the closure process
  • Sourced and funded an additional £16.5m of augment stock at no financial risk to the administration estate
  • Deployed 46 retail support specialists at store level to manage the closure process and handover of stores
  • Designed, managed and executed in-store discounting strategies to maximise stock recoveries
  • Provided systems, space planning, visual merchandising and marketing support

 

 


Results

  • Supply of augment stock at speed resulted in an improved store offering and significantly improved recoveries for the estate
  • Provision of augment stock extended the trading period while buyers were sought for the business
  • £3m sales on day one of the store closing event
  • 163 stores closed over a 12 week period and handed over on schedule
  • Recoveries outperformed initial budget agreed with the company’s Administrators
  • Overall recovery to the administration estate of £42m achieved

     
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