BHS In Administration, Spokesman Says

High street chain BHS is going into administration, putting 11,000 jobs at risk, a spokesman for the company has told Sky News.

The representative told Sky (LSE: BSY.L - news) 's Ashish Joshi, who is outside the company's headquarters in central London, that "the process (administration) has started."

A formal announcement is expected imminently.

The collapse could potentially be the biggest retail failure since Woolworths folded in 2008 with the loss of almost 30,000 jobs.

David Gill, national officer of shopworkers' union USDAW, said earlier he was "very concerned" about the situation.

The owner of BHS, Dominic Chappell, said "no one is to blame" for the retailer's collapse.

Mr Chappell told the Press Association: "No one is to blame, it was a combination of bad trading and not being able to raise enough money from the property portfolio.

"In the end, we just couldn't reach an agreement with Arcadia over pensions."

He will continue to work with the administrators Duff & Phelps to "find a solution post the administration", he added.

BHS was bought last year by a consortium of financiers, led by Mr Chappell, known as Retail Acquisitions from Sir Philip Green, who agreed the sale for £1.

The retailer has debts of more than £1.3bn, including a pension fund deficit of £571m.

Sir Philip is reported to have offered £80m towards the cost of the pensions, though the regulator could still pursue further payment from the retail billionaire.

He bought BHS for £200m in 2000.

Sports Direct has been in talks to buy some of BHS' 164 stores, but there are reports it does not want to take on the company's pension deficit.

The failure of BHS is likely to raise questions about the company's financial stewardship and the role of its directors.

Retail experts say BHS has suffered from years of under-investment, leaving its range and estate looking tired.

The chain was given a lifeline last month when creditors backed two company voluntary arrangements (CVAs) designed to revive the ailing business by cutting the cost of its leases and preventing widespread store closures.

But the deal hit a snag last week when a £60m loan, making up a crucial part of the deal, was not secured.