BHS to be wound down as rescue talks fail
Administrators for BHS have said the department store chain is to be wound down and its 163 shops sold off. This means that 8,000 jobs are likely to be lost along with a further 3,000 not directly employed by BHS.
The news comes after efforts to find a buyer for the 88 year old high street business failed despite “multiple” offers being received for the chain. Administrators Duff & Phelps said no company had been able to complete the deal due to the large amount of capital required to secure the future of the business.
BHS was sold by Sir Philip Green’s Arcadia group to Retail Acquisitions for a sum of £1 in 2015.
Philip Duffy, managing director of Duff & Phelps, said: “The British high street is changing and in these turbulent times for retailers, BHS has fallen as another victim of the seismic shifts we are seeing. The tireless work and goodwill of the existing management team and employees of BHS with the support of my team were not enough to change the fortunes of the company.”
Shopworkers union Usdaw said BHS staff were shocked by the company being liquidated after a year of uncertainty and anxiety.
Dave Gill, Usdaw national officer, said: “The staff in BHS have been in a state of anxiety and uncertainty for over a year after the company was sold for one pound, went into administration and has now been put in liquidation.
“This news is a devastating blow for the staff and the shock waves will be felt on high streets throughout the country. There are some very serious questions that need to be answered, by former owners of the business, about how a company with decades of history and experience in retail has now come to this very sorry end.”
Restructuring firm Hilco has been brought in to help liquidate BHS’s store estate and remaining stock.
