Arcadia Group founder and controlling shareholder Sir Philip Green has sold department store chain BHS to a little known investment house, Retail Acquisitions Ltd.

The BBC has reported the asking price for BHS was as low as £1 and the business was sold debt free.

The sale frees Arcadia from a drag on the earnings of its other, far more successful, retail brands including Topshop and Miss Selfridge.

News that Retail Acquisitions was the successful bidder follows intense speculation for several months, the most recent just last week. As Inside Retail Asia reported on March 9, a new bid was being prepared by Tony Brown, a former retail director at BHS, working with a private equity fund Alteri Investors, in turn backed by Wall Street fund Apollo. That, like earlier talks with South Africa’s Pepkor Group, ultimately failed.

Retail Acquisitions, described as an “obscure” business by the BBC’s business editor, counts among its directors a former Formula 3000 racing driver and entrepreneur Dominic Chappell, former director of City finance house Nabarro Wells, Keith Smith, lawyer Edward Parladorio and Lennart Henningson, a former senior advisor for HSN Nord Bank.

BHS was founded in 1928 and now has 180 stores and about 12,000 staff. Arcadia Group said BHS’ cash losses rose from £19 million to £21 million in the year to August 30.

In a statement, Sir Philip said he was pleased to have found a buyer in Retail Acquisitions Ltd which wants to develop the BHS brand.

“Having acquired the business nearly 15 years ago in May 2000, one of my clear objectives in identifying a purchaser was ensuring their desire to take the business forward.”