BHS to be wound down with loss of up to 11,000 jobs

UK High Street chain BHS is to be wound down with the loss of at least 8,000 jobs after administrators failed to find a buyer to rescue the department store.

Administrator Duff & Phelps had been trying to find a buyer for the struggling business since they were appointed in April despite receiving "multiple offers".

Up to 11,000 jobs could go, it added, with 8,000 BHS staff being axed and a further 3,000 contractors who work within the chain now "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," Duff & Phelps said on Thursday.

"Despite the considerable efforts of the administrators and BHS senior management it has not been possible to agree a sale of the business. Although multiple offers were received, none were able to complete a deal due the working capital required to secure the future of the company."

"As a result of the wind down all 163 stores will be in close down sale mode over the coming weeks and whilst continuing efforts will be made by the administrators to sell stores the jobs of 8000 members of staff are likely to go. A further 3000 jobs of non BHS employees who work in the stores may also be at risk."

Several bidders emerged for BHS during the last month, including Matalan founder John Hargreaves, Sports Direct's Mick Ashley and a consortium led by Greg Tufnell reportedly backed by the Soares dos Santos Portuguese family who own the Pingo Doce retail chain there.

The chain was sold by retail tycoon Philip Green for £1 in 2015 to Dominic Chappell, a three-time bankrupt who controls Retail Acquisitions Ltd.

Founded in 1928, BHS was bought by Green in 2000 until its sale last year. It collapsed into administration with a pension fund deficit of £571m despite the billionaire and other investors taking more than £580m in dividends, interest payments and rent during his tenure, the Guardian reported.

Both Green and Chappell will now be under immense pressure to explain their roles during the sale process. A joint investigation by parliament's Work and Pensions and Business select committees has already heard evidence from advisers to both sides and pensions trustees.

Chappell is scheduled to appear on June 8, while Green will be questioned a week later.

Frank Field, who chairs the Work and Pensions committee said he has already had to write to some witnesses seeking further clarity on their evidence.

"We have already asked nearly 1,000 questions in our hearings. So far they have prompted more questions than answers. These requests for information are the first steps of the next stage of our inquiry," he said.

"We expect these documents to shed further light on the sorry tale of BHS before our sessions with Dominic Chappell and Sir Philip Green. Yet despite all the complexities it is now clear that Sir Philip called all the main shots."