Bhs losses widened by 53% to £116m last year as the Arcadia-owned department store chain was hit by costs incurred on leases of loss-making stores.
In documents filed at Companies House for the year to August 25, 2012, the retailer said it incurred exceptional costs of £45m “for establishing a provision against the future leasing obligations of the company’s loss-making stores”.
Sales fell 18.5% to £700m.
Arcadia owner Sir Philip Green bought Bhs in 2000 for £200m. Green has been working on consolidating his Arcadia and Bhs businesses since 2009.
In 2010, he sold a package of 10 Bhs stores to value retailer Primark and was mulling further exits last year. He has also been putting Arcadia’s various brands, such as Dorothy Perkins and Burton, into larger Bhs stores to reduce the group’s rent bill.
Bhs appointed former Marks & Spencer menswear trading director Richard Price as managing director before Christmas.
Arcadia could not be reached at the time of writing.