Yahoo – AFP,
June 2, 2016
 |
| British department store owner BHS is to close administrators said after failing to find a buyer (AFP Photo/Niklas Halle'N) |
London
(AFP) - British department store chain BHS is to close with the loss of up to
11,000 jobs, administrators said Thursday after failing to find a buyer.
BHS, which
sells clothing, food and homeware, has failed to keep pace with traditional
rivals such as Marks & Spencer and online giants like Amazon, resulting in
a major loss of market share.
"Philip
Duffy and Benjamin Wiles, managing directors of Duff & Phelps (the
administrators) have today announced the orderly wind down of the BHS
business," a statement said.
The
88-year-old company's 163 stores will enter "close-down sale mode"
over the coming weeks following failed last-ditch rescue attempts by former
Mothercare boss Greg Tufnell and Mike Ashley's Sports Direct.
 |
BHS, which
sells clothing, food and homeware,
has failed to keep pace with traditional
rivals such
as Marks & Spencer and online giants like
Amazon, resulting in
a major loss of market
share (AFP Photo/Niklas Halle'N)
|
"Despite
the considerable efforts of the administrators and BHS senior management it has
not been possible to agree a sale of the business," the statement added.
"Although
multiple offers were received, none were able to complete a deal due 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."
BHS had called
in outside help last month in order to help rescue the struggling firm from
potential closure.
Pension
fears
However,
Duff & Phelps was unable to turn around the fortunes of the faltering
retail giant.
"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.
"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."
According
to retail consultancy Conlumino, BHS attracted some 13.4 percent of all British
clothing shoppers through its doors fifteen years ago, and had about
2.3-percent of the clothing market.
Last year
however, BHS pulled in just 8.2 percent of clothing shoppers, handing it a
1.4-percent share of the sector.
BHS has
debts totalling more than £1.3 billion ($1.9 billion, 1.7 billion euros),
including a £571-million deficit to its pension fund, which looks after the
nest eggs of over 20,000 savers.
The
collapse has shone the spotlight on previous owner Philip Green, the Top Shop
tycoon.
MPs are set
to question him about a £400 million dividend paid to his family from the business,
which he sold last year to Retail Acquisitions for a token £1.
He also
faces questions about the pension scheme, which boasted a surplus when he took
over 16 years ago.
Starting in
1928 with a chain in London, BHS has since grown to stand at 163 stores and 74
franchise operations across 18 countries.
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