BHS files for administration as last-ditch rescue talks fail
BHS has confirmed it will enter administration on Monday (25 April), placing some 11,000 jobs at risk after the embattled retailer failed to reach a last-minute deal to stay afloat.
A previous report on 25 April suggested that, despite ongoing talks with Sports Direct to buy 164 of the British retailer's stores, any buyer would only consider a purchase if it did not have to assume responsibility for the chain's £571m ($822m) pension deficit. Other potential suitors included Next and John Lewis.
A spokesman for the high street retailer, one of Britain's most famous brands, confirmed that the group has began the process of filing for administration before adding the staff will be informed of the decision at 11am, BST, on 25 April.
Barring late miracles, BHS will file for administration once courts open at 10. Staff then told,and that they will be paid on Fri as planned
— Graham Ruddick (@GrahamtRuddick) April 25, 2016
#BHS confirms to journalists outside its HQ that it is going into administration. Process has begun. @itvnews pic.twitter.com/Bm7zGjmEqM
— Joanna Partridge (@JoannaPartridge) April 25, 2016
The group, which has reported trading losses for seven years totalling £415m, was handed a lifeline last month after creditors accepted reduced rent for around half of BHS's stores.
Dominic Chappell, head of business Retail Acquisitions, who bought BHS from retail tycoon Sir Philip Green for £1 in 2015, urged BHS staff late on Sunday night, through a letter, to hold their heads high.
"I would like to say it has been a real pleasure working with all of you on the BHS project, one I will never forget," the letter said.
"You all need to keep your heads held high, you have done a great job and remember it was always going to be very, very hard to turn around."
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