Home / Knowledge / News / Apparel/Garments / BHS to close down after rescue bid fails
BHS to close down after rescue bid fails
06
Jun '16
Courtesy: BHS
Courtesy: BHS
British department store chain BHS which has been around for 88 years, will be closed down after no buyer came forward to rescue the loss-making entity. The closure will mean up to 11,000 job losses.The decision followed a lengthy bidding process aimed at saving BHS, which went into administration in April.

Administrators Duff & Phelps, who took control of BHS in April, said in a statement on Thursday that “despite the considerable efforts?…?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 to the working capital required to secure the future of the company,” they added.

The administrators had spent the past five weeks scrambling to find a buyer among a dwindling band of possible rescuers.

Mike Ashley, the Sports Direct tycoon who had proposed to take over all 164 BHS stores, stepped away after reports that he had been outbid. Edinburgh Woollen Mill chief executive Philip Day was also said to have expressed interest, only to pull back.

Sir Philip Green, who owned BHS from 2000 until 2015, said he was “saddened and disappointed” by the winding up order. The winding-down process will deliver funds to secured creditors, including Sir Philip, who is owed some £40m.

Its collapse has left behind a pension deficit that will be absorbed by an official rescue fund, at an estimated cost of £275m.

BHS' closure marks the biggest collapse in British retail since Woolworths closed its doors in 2008

All BHS stores will be holding closing sales over the coming weeks. Hilco Retail Services - the company in charge of the liquidation process - will look for buyers for the stores and the business's other assets.

Hilco's job will be to ensure that the stores continue to trade for as long as possible to allow the administrators to generate the biggest possible returns for creditors - those owed money by BHS. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Apparel/Garments | On 26th Jun 2017

GSTN registration reopens

E-commerce operators and TDS (tax deducted at source) deductors can...

Textiles | On 26th Jun 2017

Expedite release of ROSL pending claims: TEA to Centre

The Tiruppur Exporters' Association (TEA) has again urged Union...

Textiles | On 26th Jun 2017

'Export promotion schemes to continue under GST regime'

The export promotion schemes will continue under GST regime, said...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search