British Home Stores

British Home Stores

File:BHS logo.svg
Company type	Private (after 2000)
Industry	Retail
Founded	1928
Founder	American businessmen
Defunct	2016 (UK operations)
Fate	Entered administration; UK stores closed; brand acquired by Al Maya Group
Headquarters	Dubai , United Arab Emirates
Area served	United Kingdom (until 2016), Middle East, Africa, Europe (post-2016)
Key people	Sir Philip Green (owner from 2000 to 2015)
Products	Apparel, home goods, furniture, lighting products (post-2018)
Owner	Al Maya Group (intellectual property rights since 2016)
Number of employees	Approx. 11,000 (at administration in 2016)
Website	www.bhs.com

British Home Stores (BHS) is a department store retailer of British origin, now based in the United Arab Emirates, specializing in apparel and home goods. Established in 1928 by American businessmen, it grew to become one of the most prominent department store chains in the United Kingdom before halting its UK operations in 2016.

In May 2000, ownership of BHS transferred to Sir Philip Green, who took the company private. It became part of Green's Arcadia Group in 2009. After enduring continuous financial losses, BHS was sold in March 2015 to Retail Acquisitions Ltd for a nominal sum of £1. The business entered administration in April 2016, leading to the closure of its last 22 UK outlets by August of that year.

September 2016 saw Qatar-based Al Maya Group, now headquartered in Dubai, acquire the intellectual property rights of BHS and relaunch BHS.com targeting the UK market. The group operated physical stores across regions including the Middle East, Africa, and parts of Europe for some time. Al Maya discontinued BHS.com in June 2018 to prioritize other business interests. Subsequently, in October 2018, Manchester-based Litecraft Group Ltd reintroduced BHS.com under license from Al Maya, focusing mainly on lighting products.

As of June 2025, Al Maya Group continues to operate a single physical British Home Stores outlet located at Landmark Mall in Doha, Qatar.

Founding

British Home Stores was launched in 1928 by American entrepreneurs who sought to emulate Woolworths’ retail success without directly competing with it. Initially, product prices were capped at one shilling. The first store opened in Brixton, and by 1929, the price ceiling was increased to five shillings to allow for a wider product range. The chain expanded by adding stores with cafeterias and grocery sections and went public in 1933. By the late 1960s, post-war expansion had grown the network to 94 stores across the UK.

Growth

Throughout the 1970s and 1980s, BHS continued expanding and was among the founding companies listed on the FTSE 100 index in 1984. It opened new outlets within emerging indoor shopping centres such as Broadway and Lakeside. A collaboration with Sainsbury's resulted in the creation of SavaCentre hypermarkets, which Sainsbury's fully acquired by 1989.

After experiencing a decline during the early 1980s, BHS undertook store refurbishments and shifted focus toward higher-margin merchandise. This period saw the closure of its sole overseas store located in Dublin while launching its first franchise operation in Gibraltar in 1985. Franchise locations operated throughout Europe and the Middle East under brands including Tammy.

BHS stocked basic electrical kitchen appliances and broadened its inventory through larger retail spaces and an external online platform, bhsdirect.co.uk, which offered laptops, tablets, and large household appliances like fridge-freezers and televisions.

In 1986, BHS merged with Habitat and Mothercare to establish Storehouse plc. The brand refreshed its logo and changed its stylization from "British Home Stores" to "BhS" (later "Bhs" before reverting to "BHS"), although some historic storefronts retained their original signage.

Adapting to retail trends, BHS launched out-of-town stores such as its two-level location at Merry Hill Shopping Centre in 1989. This new store replaced nearby Dudley and West Bromwich branches that had been affected by changing consumer habits linked to developments like SavaCentre hypermarkets.

Acquisition by Philip Green

During the mid-1990s, BHS experienced a transformation spearheaded by the retail design agency '20:20', which introduced the "millennium concept" store format at the Grafton Centre, Cambridge in 1995. This redesign featured a gentler Bhs logo alongside ambient lighting, targeting a clientele of contemporary, discerning shoppers.

In 1995, BHS made history as the first high street retailer to establish a presence in Moscow, investing £3 million in what became its most significant international venture. A subsequent store opened in St Petersburg, followed by further expansion into Uzbekistan and Kazakhstan by 1998. The brand also launched outlets throughout Saudi Arabia, Kuwait, Dubai, Oman, Qatar, Bahrain, and Abu Dhabi. By the year 2000, BHS had extended its reach to locations including Greece, Tenerife, Gibraltar, Malta, and regions in the Far East.

Towards the end of the 1990s, Storehouse Plc encountered declining results, with BHS and Mothercare suffering the greatest impact. In May 2000, Philip Green acquired BHS from Storehouse for £200 million, transitioning it into private ownership. Two years later, Green broadened his retail holdings by purchasing the Arcadia Group, which encompassed labels such as Topshop, Burton, Evans, Dorothy Perkins, and Wallis. This acquisition positioned Arcadia as the UK's second-largest clothing retailer after Marks and Spencer. At the time of sale, Alan Smith, then chairman of Storehouse, commended Green's decisive vision and ambitious approach.

In early 2006, BHS launched "Bhs Kids" franchises within Middle Eastern markets, featuring popular children's merchandise drawn from its primary stores.

Reinstatement of British Home Stores Branding

In May 2005, Green acquired Etam UK from Etam Développement. The Etam UK portfolio included brands such as Etam, Amelie May, and Tammy—the latter being the most successful in terms of sales and brand recognition. To strengthen the appeal of girls' fashion under BHS's umbrella, standalone Tammy outlets were closed by September 2005 and their offerings were integrated into existing BHS stores.

Also in 2005, after more than twenty years away from UK high streets, BHS reinstated its British Home Stores branding. This move followed acquisitions of former Allders at Home locations aimed at broadening BHS's homewares range to include furniture, curtains, rugs, and wall decorations. Featured brands included Denby, Maxwell Williams, Typhoon, Brabantia, Terence Conran, and Jasper Conran.

That same year witnessed Green’s wife receiving a dividend payout amounting to £1.2 billion from Arcadia.

On 27 February 2009, BHS was formally merged into the Arcadia Group. Centralized support services were consolidated while selected BHS stores began incorporating Arcadia brands; for instance, by July 2009 Evans and Wallis concessions were introduced inside BHS stores located in Solihull and Bexleyheath. By August that year, other outlets such as Canterbury also featured Wallis and Evans concessions. Additional stores with Arcadia brand integrations included Tunbridge Wells, Oxford, Peterborough, Watford, Kilmarnock, Nottingham, Camberley, Norwich, and Aberdeen.

Leadership transitions

In May 2009, Mike Goring took on the role of managing director, with Jacquie Gray joining as Creative Director two months later in July. The following year, BHS refreshed its branding by reintroducing the uppercase abbreviation last seen in the 1990s. Alongside this, the retailer launched a new online shopping platform and began rolling out an updated store layout.

BHS ventured beyond the UK in 2011 by opening a new outlet in Armenia.

Goring departed in 2012 to become Retail Director at Debenhams, and Richard Price, previously Menswear Trading Director at Marks and Spencer, replaced him as managing director. Gray exited the company in 2014.

During 2013, BHS expanded its footprint by establishing a franchised concession in the Falkland Islands and launching a store in Ulaanbaatar, Mongolia.

In January 2014, BHS announced intentions to introduce branded food products, starting with a pilot program across 50 stores and potential growth to 150 locations. The initial trial store opened in Staines in March 2014, with subsequent launches in Warrington and Romford.

The company also maintained a separate furniture retail website, bhsfurniture.co.uk, featuring brands such as Italsofa, G Plan, Relyon, and Silentnight. Larger outlets like the Barton Square branch at Trafford Centre showcased the Welle cabinet range alongside Sharps showrooms.

In December 2014, New Zealand's childrenswear brand Pumpkin Patch became available both online and within larger BHS stores.

By January 2015, Sir Philip Green publicly acknowledged he was contemplating selling BHS due to ongoing financial losses and confirmed receipt of multiple acquisition offers.

Sale and reorganization

On 12 March 2015, Retail Acquisitions purchased BHS for a nominal sum of £1. Following this transaction, Richard Price resigned as managing director to join Tesco's clothing division, with former BHS Chief Operating Officer Darren Topp stepping in as interim Chief Executive. Soon after, plans emerged to potentially close 51 out of the 171 existing stores.

In September 2015, Retail Acquisitions unveiled a £60 million revitalization initiative that reinstated the full British Home Stores name on high streets for the first time since 1986. This strategy focused on modernizing retail spaces and expanding food hall offerings.

By early 2016, continued store closures led BHS to withdraw from several city centre locations including Bath, Cardiff, Carlisle, Oxford, Reading, and Southampton. Additionally, there were plans to reduce the size of the flagship Oxford Street store by leasing excess space to other retailers.

In March 2016, BHS pursued a company voluntary arrangement (CVA) aimed at restructuring operations. The company disclosed a pension shortfall of £207 million and sought to transfer pension obligations to the Pension Protection Fund. Meanwhile, negotiations began with a consortium led by banker Nicholas de Scossa interested in acquiring the business.

Administration

On 24 April 2016, Dominic Chappell, owner of Retail Acquisitions, announced that administrators would be appointed the following day. Consequently, BHS entered administration on 25 April 2016, placing approximately 11,000 jobs at risk. The firm Duff & Phelps was appointed to manage the sale of the business as a going concern. At this juncture, BHS carried debts totaling £1.3 billion, including £571 million related to pension liabilities—necessitating either asset disposals or new ownership arrangements. While UK sports retailer Sports Direct reportedly engaged in talks to acquire some outlets, no definitive buyer materialized, resulting in further store closures. Head office employees were made redundant after no purchaser was found; however, stores remained operational for up to eight weeks to clear remaining inventory.

In July 2016, a UK parliamentary committee released a report titled "Leadership failures and personal greed led to collapse of BHS." The Guardian drew attention to MPs' sharp criticism of Sir Philip Green’s management approach, labeling the downfall an "unacceptable face of capitalism" and accusing previous owners of "systematic plunder."

On 23 July 2016, administrators Duff & Phelps shut down 20 stores followed by an additional 30 closures the subsequent week. The final shops ceased trading on 28 August 2016. The insolvent division of the company entered liquidation on 2 December 2016, initiating formal winding-up procedures.

2024 Litigation Concerning the Administration Procedure

In June 2024, the High Court mandated that ex-directors Lennart Hennington and Dominic Chandler pay a total of £18 million—comprising £13 million for wrongful trading and £5 million for breaches of corporate responsibilities—following a lawsuit initiated by the liquidator representing creditors. A subsequent hearing scheduled for June 2024 will finalize the exact sum to be paid.

Operations in the Middle East, Africa, and Europe

Following the closure of UK outlets, Al Mana Group sustained the operation of BHS stores internationally throughout regions including the Middle East, Africa, and Europe. As of June 2025, a single BHS location continues to operate in Qatar.

Relaunch of BHS.com

In June 2016, the Qatari-based Al Maya Group took over BHS’s international franchise outlets along with its online business, founding BHS International (UK) Limited in London. Under the brand "The British Home Store," bhs.com was launched in September 2016. Nevertheless, by June 2018, Al Maya decided to shut down the website to concentrate efforts on global franchise operations. Since October 2018, Litecraft Group Limited has managed bhs.com under license, offering lighting products and a curated selection of homewares.