High Street retailer and department store giant BHS is to file for administration, putting almost 11,000 jobs at risk.
Representatives from the group have revealed that it is to enter administration after sources close to the company’s owners admitted that ‘things don’t look good.’
In a letter to staff BHS owner Dominic Chappel said the owners had failed to find a funder or a trade sale.
“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,” he said.
He added that he was ‘sincerely sorry’ and assured staff that they would be paid their wages this month.
“I would like to say that 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 hard to turn around.”
BHS recently engaged in talks with Sports Direct to sell some of its 164 stores, but these failed to land owing to the looming £571 million pension deficit.
It has been suggested that Phil Duffy, managing director at Duff & Phelps has been appointed as administrator.