Retail round-up on May 14, 2016: BHS suitors told to raise their offers, Ikea's second Dublin store and convenience stores say they 'fear' living wage.
BHS administrator asks potential BHS suitors to raise bids
BHS’s administrator Duff & Phelps has reportedly told a raft of suitors vying to buy the collapsed high street chain out of administration to raise their bids by May 17 to stand a chance, Financial Times reported.
At least one buyer has been asked by the administrators to increase their offer by “tens of millions”, according to a person familiar with the situation.
“We are dealing with a number of interested parties and are hopeful of concluding a sale of the business and assets of BHS next week,” the administrators said.
Meanwhile, Goldman Sachs banker Anthony Gutman is set to be grilled by the MPs over his advice to Arcadia tycoon Sir Philip Green on the sale of the department store chain to Retail Acquisitions for £1 last March.
Law firm Olswang and accountants Grant Thornton could also be invited to appear before the parliamentary committee to give evidence.
Convenience retailers could cut jobs to bear the brunt of living wage
A third of British local shops would be forced to increase prices or slash jobs, thanks to the introduction of the compulsory national living wage.
A survey of around 1,000 of the UK’s convenience stores by Palmer & Harvey found that the living wage was the biggest concern for local shopkeepers over the next year.
“Convenience retailers are considering how they will react to the extra costs because there is no point increasing costs of goods if there is a supermarket nearby to compete with – they’ll lose business. As a result, many of them are looking at cutting staff or reducing their hours,” said Martyn Ward, managing director of Palmer & Harvey.
Ikea to set up store in south Dublin at Carrickmines
Ikea will open its second Dublin store measuring 15,000sq ft in Carrickmines this summer following a 10-year lease deal with Irish property group IPUT.
The location would be the furniture retailer’s first order and collection point at The Park in Carrickmines.
Niall Ringrose, IPUT’s head of property management said, “Its new Order and Collection Point will significantly enhance the high-quality retail offering already available at the Park and helps confirm it as Ireland’s leading retail park.”