BHS goes into administration
BHS goes into administration
It was announced this morning that BHS have gone into administration after failing to agree a last-minute deal that could have rescued the department store, putting 11,000 jobs at risk.
The reason for its failing is said to be an inability to find the £60 million in emergency funding that was needed to pay wages and rent and stop it going under.
Although BHS are expected to operate as normal until a buyer comes forward, administrators Philip Duffy and Benjamin Wiles believe there was no alternative but to put the group into administration after property sales failed to materialise. As a result, the group is unlikely to meet all contractual payments.
There is an understanding that BHS have seen more than 30 expressions of interest with Sports Direct being named as a potential buyer alongside South African retail group, Pepkor. It is expected that BHS will be sold on a store-by-store basis, however, a source has suggested that 100 stores can still run if they can be plugged into an existing business with head office functions and logistics infrastructure.
Despite the news, BHS responded on Twitter by saying, “Good morning! It’s another busy day here at BHS. We will be here till 11pm tonight to answer everyones questions. Have a nice day.”
This positive outlook could be due to BHS still seeing one million transactions going through the company each week, showing that the brand still holds value, especially in secondary or tertiary towns.
Customers are saddened by the BHS news but are not surprised to hear it after Arcadia boss Sir Philip Green sold the chain to Retail Acquisitions for £1 last March.
BHS goes into administration
