Ailing high street giant BHS expected to file for administration

High Street retailer BHS is expected to file for administration today, putting almost 11,000 jobs at risk.

The BBC reports that talks with Sports Direct to sell some of BHS’s 164 stores – which includes the one in Merseyway in Stockport – collapsed over the weekend, and it is understood any buyer would do so only if it did not have to take on the £571m pension deficit.

It is still hoped that the administrators will be able to sell BHS as a going concern.

It would also be the biggest retail failure since Woolworths – which also had a store in Merseyway – folded in 2008 with the loss of almost 30,000 jobs.

BHS has eight stores in Greater Manchester including Market Street in Manchester city centre, Bolton, Bury, Oldham, Denton and Wigan. It closed its Trafford Centre store at the start of the year.

In a letter to staff, BHS owner Dominic Chappell said: “It is with a deep heart that I have to report, despite a massive effort from the team, we have been unable to secure a funder or a trade sale.”

Mr Chappell said he was “sincerely sorry” and assured staff they would be paid their wages this month.

He added: “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, you all need to keep your heads held high, you all have done a great job, but remember that it was always going to be very very hard to turn around.”

Last year, Retail Acquisitions, a consortium of financiers led by Mr Chappell, bought BHS from the retail entrepreneur Sir Philip Green for £1.

The shopworkers’ trade union Usdaw said it is ‘very concerned about media speculation’.

David Gill, Usdaw National Officer, said: “We are very concerned about speculation in the media that BHS is on the verge of going into administration.

“We are seeking urgent clarification from the company and urging them to change their attitude to trade unions and begin a dialogue with us at this difficult and worrying time for staff.

“We also urge the company to comply with the law, consult staff and Usdaw as the union for BHS workers on the future of the business.

“I am writing  to members working in BHS to reassure them that we will provide the support, advice and representation they require.”