The former BHS property director has said he “significantly exceeded” targets in the company’s turnaround plan at a parliamentary hearing this morning.
When asked whether BHS’s turnaround was dependent on property deals, Mark Sherwood said it was but that his team delivered more than expected.
“We achieved everything we needed to in terms of savings by taking it through the CVA. We executed all of the property transactions we were asked to do. We raised more capital from property sales than was originally in the plan,” he said.
Iain Wright, a Labour MP, responded: “The reason we’re having this enquiry is because there was a spectacular failure which has resulted in 11,000 people losing their jobs and you say it was a success. How can you say that?”
Although it was “not a success in that context”, Sherwood said that reductions in rent saved the company millions, including £2.7m from 21 stores whose rent had been cut by 25% and £8.5m from stores with cuts of 50%.
Earlier in the hearing, Sherwood admitted no valuations were done for Marylebone House and North West House before they were sold.
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