BHS Nears Collapse Putting 11,000 Jobs At Risk

Retailer BHS is understood to be calling in administrators, threatening up to 11,000 jobs across the UK.

A statement is expected to be made later about the company's future.

Sky (LSE: BSY.L - news) 's City Editor Mark Kleinman said: "BHS has been struggling for many years.

"It (Other OTC: ITGL - news) was sold by the high street billionaire Sir Philip Green for £1 last year to a group of little-known financiers through a group called Retail Acquisitions.

"A few weeks back it looked like they had secured an urgent lifeline by getting approval from landlords and other creditors to reduce its rent bill at its more than 160 stores.

"But a separate £60m loan that the company required has failed to materialise."

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

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

"We are seeking urgent clarification from the company and urging them to change their attitude to trade unions and begin a dialogue with us at this difficult and worrying time for staff.

"We also urge the company to comply with the law, consult staff and USDAW as the union for BHS workers on the future of the business.

"I am writing to members working in BHS to reassure them that we will provide the support, advice and representation they require."

BHS could be the biggest retailer to collapse since Woolworths disappeared in 2008 and that is likely to raise questions about the company's financial stewardship and the role of its directors.

Although one of the UK's most recognised high street brands, BHS has struggled against value fashion rivals and online shopping.

It performs on average one million transactions a week across 164 stores and 74 franchise stores across 18 countries - but has struggled to be profitable.