BHS stores to close after rescue talks fail

Department store BHS is to go into liquidation 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.

In the end, none of the offers was judged acceptable by administrators Duff & Phelps.

Three firms - Alteri, Hilco and Gordon Brothers - have been lined up as liquidators. 

Duff & Phelps blamed "seismic shifts" in the retail environment for the collapse.

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 in the end, the financial backing for the bid failed to materialise.

Closing sales

"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 in a statement.

"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."

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

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."

Image : Martin Good/Shutterstock

Source : BBC News
www.bbc.co.uk/news/business-36437445 

Hannah Maundrell, editor in chief at www.money.co.uk, said: 

"It’s devastating that the final curtain has come down on BHS after 88 years on the High Street and saddening that no one was prepared to save the ailing retail giant at the final hour. 

“The stores will sell of stock in a massive sale over the coming weeks but don’t expect refunds, exchanges or even gift vouchers to be honoured. If there’s an issue with something you’ve bought from BHS or if an order you’ve paid for never arrives then your credit card company should be your first port of call as long as the item cost over £100; they should reimburse you for any losses via a Section 75 claim. If you paid on debit card then tell your bank you’d like to make a chargeback claim. If you paid by cash then there is a chance you could be left out of pocket as you’re likely to fall near the bottom of the queue for payments.” 

We also have this guide on section 75 claims if it’s of help: 
http://www.money.co.uk/credit-cards/how-does-section-75-protect-your-credit-card-spending.htm  

This one is about your rights & what to do if a company goes into administration: administration:
http://www.money.co.uk/guides/your-rights-if-a-retailer-goes-into-administration.htm

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