BHS to be wound down as rescue attempt fails

                             

Department store BHS will be wound down with the loss of up to 11,000 jobs after efforts to find a buyer failed.

The decision followed a lengthy bidding process aimed at saving BHS, which went into administration in April.

But none of the offers was judged acceptable by administrators Duff & Phelps, which blamed "seismic shifts" in the retail sector for the collapse of the chain.

All 163 BHS stores will be holding closing sales over the coming weeks.

Former owner Sir Philip Green said he was "saddened and disappointed" by the biggest retail collapse since Woolworths in 2008.

A spokesman said the billionaire Topshop owner had hoped to see the company sold as a going concern.

Staff at one London store were only informed of the decision by a journalist. Customers were then told to leave the store and the shutters closed.

Hilco Retail Services has been appointed to assist in the process of winding down the BHS store network.

Hopes of rescuing the store chain had rested on a late offer from a company led by retailer Greg Tufnell and reportedly backed by Portuguese money.

But sources told the BBC that the financial backing needed for the bid failed to materialise.

Other bidders who failed to convince the administrators included a consortium led by Matalan founder John Hargreaves, as well as separate offers from Sports Direct's Mike Ashley and Poundstretcher boss Aziz Tayub.

"Despite the considerable efforts of the administrators and BHS senior management, it has not been possible to agree a sale of the business," said the administrators.

"Although multiple offers were received, none were able to complete a deal due to the working capital required to secure the future of the company.

"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."

The jobs of 8,000 members of staff are likely to go, while a further 3,000 jobs of non-BHS employees who work in the stores may also be at risk.

"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," said Philip Duffy, managing director of Duff & Phelps and joint administrator.

"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."

John Hammett, general secretary of the retail union Usdaw, said the news was devastating but not necessarily the end of the road.

"There were a number of potential buyers here and the question is why they haven't been successful," he said. "We need to make sure that every opportunity has been covered before we accept defeat."

Source: BBC