Hargreaves ‘a contender for BHS’

MATALAN founder John Hargreaves is reported to behind a mystery rescue bid for stricken retailer BHS.

Liverpool-born Hargreaves is said by the Daily Telegraph to be working with a rival retailer on a deal to buy the failed chain.

Administrators at Duff & Phelps are reported to be optimistic about selling BHS as a going concern by the end of the week and have told suitors they must increase their offers, take on all the shops and also the chain’s debt liabilities.

Hargreaves is credited with bringing discount fashion to the UK with Matalan 30 years ago, but his family chain is said to be struggling with slumping sales.

Matalan’s banks gave it a reprieve on its debt after credit rating agency Standard & Poor’s raised concerns about £500m of borrowings and a sharp fall in profits.

However, Hargreaves has a huge personal fortune and was paid a £250m special dividend in 2010 after he refinanced the company.

Meanwhile, Preston-based property millionaire Yousuf Bhailok is reportedly pulling out of the race to save BHS after administrators told buyers to up their offers.

Bhailok said he lost interest after being told he would have to make an offer to buy all of BHS’s 164 shops.

Bhailok said: “Caution has to be exercised in light of certain risk factors as far as the overall level of the bid. We believe we have to keep within our parameters if we were to successfully revive the vast majority of the operation.”