BHS News Update: BHS drop £71 million into the red. The Daily Mirror reported that the Department store giant made large losses over the last trading year.
There is no doubt that the recession has made times tough for many of our most familiar high street names and last year saw the high street favourite that is owned by retail goliath Sir Philip Green make a huge loss, a swing downwards from the previous years profit of over twelve million pounds.
Tough trading was blamed for the losses and the figures did not make for very happy reading. It was reported that turnover had fallen to just under seven hundred million when figures that were filed at Companies House earlier in the summer were calculated to the end of August 2012.
However this was not the end of the doom and gloom for Green’s BHS as if the figures were adjusted to reflect lease provisions paid on Nationwide BHS stores that were in the red, the reported losses worsened from seventy six million to one hundred and sixteen million pounds.
However although these losses look punishing, it was not all bad news for Sir Philip as a separate filing showed that Taveta, Green’s holding company, paid out a sum of twenty six million pounds to his wife in the last financial year. Lady Green and the family also had an interest payment on loan notes to the tune of fifteen million pounds while a further sum of just over eleven million pounds was pad out in rent to a property company controlled by Lady Green and her family.
Despite the problems at BHS, the overall performance of Taveta that also has in its stable Top Man and Dorothy Perkins was judged to have been good for the financial year. The holding company went from showing a one hundred and twenty million pound loss to a one hundred and three million pound profit in the financial year that ended on August the 25th 2012.