Business

200 jobs to go in Northern Ireland as shutters come down on BHS retail chain

BHS is to disappear from the high street, resulting in the loss of up to 11,000 jobs, after administrators failed to find a buyer
BHS is to disappear from the high street, resulting in the loss of up to 11,000 jobs, after administrators failed to find a buyer BHS is to disappear from the high street, resulting in the loss of up to 11,000 jobs, after administrators failed to find a buyer

MORE than 200 retail jobs will go in Northern Ireland when department giant BHS shuts its four stores after slumping into liquidation yesterday.

Up to 11,000 jobs will be lost across the UK after efforts to find a buyer for the store failed.

BHS went into administration in April, and despite a number of offers being made to buy the chain, none were accepted by administrators.

And its outlets at Belfast, Holywood, Newtownabbey and Lisburn will shut over the coming weeks along with all BHS's other 159 shops.

The chain is the latest in a long line of high street retailers to have folded since the financial collapse of 2008 and against a surge in on-line shopping.

It started with furniture brand MFI in November 2008 with the loss of 1,450 jobs, was followed in January 2009 by the collapse of Woolworths, one the biggest and oldest names in retail, which plunged 27,000 people on to the dole.

Other top brands to follow into administration included music retailer Zavvi (3,400 jobs), Habitat, Peacocks (7,500 jobs), Game Group (2,100 jobs), Clinton Cards, JJB Sports, Comet, Jessops, HMV, Blockbuster, Phones 4U and, just last month, Austin Reed.

Former BHS owner Sir Philip Green said he is "saddened and disappointed" on learning that the retailer is to disappear from the high street.

A spokesman for the billionaire Topshop owner added that he had hoped to see the department store chain sold as a going concern.

Hopes had been raised that last-ditch bids from former Mothercare boss Greg Tufnell and Mike Ashley's Sports Direct could rescue the stricken retailer, but they ultimately fell short.

Administrators Duff & Phelps said: "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."

The administrator added that BHS will be in "close-down sale mode" over the coming weeks as it proceeds an "orderly wind-down" of the business.

Philip Duffy, managing director of Duff & Phelps, said: "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.

"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."

Restructuring firm Hilco will now be tasked with helping liquidate BHS's store estate and remaining stock.

BHS fell into administration in April, leaving behind a £571 million pensions black hole and sparking an investigation by MPs into its demise.

Attention will now turn to the role of Sir Philip, who owned the chain for 15 years, and the man he sold it to for £1 last year, former bankrupt Dominic Chappell.

MPs are set to quiz both men in the coming weeks over their roles in the retailer's collapse.

The pair have been roundly criticised: Sir Philip for paying a £400 million dividend to his family from the business and over his management of the pension scheme, and Mr Chappell for sucking management fees out of BHS before its collapse.

As a secured creditor to BHS, Sir Philip's Arcadia also stands to pocket up to £35 million from the liquidation, depending on how much Hilco can glean from the property and stock.