Staff at the Isle of Wight branch of British Home Stores (BHS) will be anxious this morning to hear whether the failing company can be saved in a last-minute deal with Sports Direct.
BHS, which has 164 branches across the UK and employs 11,000 people, was founded in 1928 by American entrepreneurs.
Sold for £1
It was sold in 2015 by the billionaire Philip Green for £1 to Dominic Chappell, the former director of Island Harbour, which in 2008 went into administration reportedly owing £500,000 to creditors.
During his 15 year ownership of the company, Philip Green reportedly paid his wife £400m in dividends.
Will there be a rescue deal?
Talks have been ongoing over the weekend with the owner of Sports Direct, Mike Ashley, but concerns have been raised about the company’s debt and pension deficit.
Unless a rescue deal is agreed this morning, staff will be told during a meeting at 11am that the company will go into administration.
Update: Company goes into administration
This afternoon, a spokesperson from BHS told OnTheWight,
“Philip Duffy and Benjamin Wiles, Managing Directors at Duff & Phelps have today been appointed Joint Administrators of BHS (The Group).
“The Group has been undergoing restructuring and, as has been widely reported, the shareholders have been in negotiations to find a buyer for the business. These negotiations have been unsuccessful. 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 Directors therefore have no alternative but to put the Group into administration to protect it for all creditors. The Group will continue to trade as usual whilst the Administrators seek to sell it as a going concern. Further announcements will be made as appropriate in due course.”
Our thoughts are with all those working at BHS on the Isle of Wight.
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