Retailer BHS Faces Uncertain Future

High street retalier BHS has collapsed, threatening 11,000 jobs and 164 stores - the latest victim of the rise of e-commerce

Karen Kwok 25 April, 2016 | 5:39PM
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British department store chain British Home Stores entered administration today, threatening up to 11,000 jobs and the closure of 164 stores. This 88-year-old privately owned company will be the largest retailer to fail since Woolworths went under in 2008 at the height of the financial crisis.

BHS’s administrators Duff & Phelps said in a statement on Monday that the shareholders of the company had been in negotiations to find a buyer for the business however unsuccessful. As a result the company’s directors have “no alternative” but to file for administration to protect it for all creditors.

"In addition property sales have not materialised as expected in both number and value. Consequently, as a result of a lower-than-expected cash balance, the group is very unlikely to meet all contractual payments,” the administrators added.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
ASOS PLC4,927.37 GBX-2.74Rating
Associated British Foods PLC2,361.51 GBX3.03Rating
Boohoo Group PLC332.00 GBX1.07
Frasers Group PLC570.00 GBX-0.44
Marks & Spencer Group PLC155.95 GBX-0.67Rating
Mothercare PLC15.80 GBX-3.07
Next PLC8,036.00 GBX-0.40

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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