11,000 jobs to go as high street retailer is wound down
HIGH street retailer BHS is being wound down, with total of 11,000 jobs being cut, after administrators were unable to complete a deal to save the business.
8,000 jobs will definitely be cut, and a further 3000 jobs of BHS employees who work in the stores may also be at risk.
The business went into administration at the end of April after a last-minute rescue deal collapsed.
BHS was bought by billionaire Sir Philip Green for £200m in 2000, but he sold it last year for just £1. It was bought by Retail Acquisitions, a consortium of financiers, lawyers and accountants, headed by former racing driver Dominic Chappell.
Philip Duffy and Benjamin Wiles, managing directors of Duff & Phelps and administrators of BHS today announced the “orderly wind down” of the business.
They said that despite “considerable efforts” of BHS senior management and themselves, an agreement was not reached on the sale of the business.
Multiple offers were received but none was completed due to the working capital required to secure to future of the company.
163 stores will be in close down sale mode in the coming weeks, and administrators will continue to attempt to sell BHS’ assets.
The administrators said: “Our thoughts today are with the employees. We thank them for their professionalism and hard work. We would also like to thank the great British public for helping us in our efforts to save BHS resulting in several weeks of significant sales.
Philip Duffy, Managing Director of Duff & Phelps and Joint Administrator 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.”
