There’s no avoiding it. It’s been in the news for many weeks. With MP’s offering their opinions and news companies pressuring staff members for comment, it’s about time we published our own thoughts and information on the situation surrounding retail store BHS! If you’ve not seen the news recently then you’re in the right place. We’ve provided you with a short summary of what’s happened to the store and what the consequences are of the store filing for administration. The Background Back in April of this year, it was announced that BHS had filed for administration, putting over 10,000 jobs at risk. The company at that point had debts of over £1 billion including £571 million in pension liabilities. It was also revealed that the high street store had been unable to find £60 million in emergency funding which was needed to pay wages and stop the chain from going under! What This Means for the Chain A lot of discussions have happened to determine the best course of action for the chain. Currently, Sports Direct founder Mike Ashley is in discussions to buy some of the 164 stores, although it is understood that this is unlikely to ever happen, due to the businessman being outbid by rivals including the owners of Matalan and Edinburgh Woollen Mill. Another option for the chain is a loan or buyout. However, if this can’t be secured, then the high street chain faces closure of all 164 stores as well as thousands of jobs losses! This would be the biggest high street failure since Woolworths went bust in 2008! Because of what has happened to the high street store, head office staff were immediately made redundant following the announcement of liquidation, and it is understood that stores are expected to only last about 8 weeks selling the remaining stock! What will happen to wages and pensions The main concern that has been voiced in the news is whether staff will be paid and have a pension. It’s recently been revealed by the Financial Times that staff wages are covered until the end of the month, but the pension schemes are still at considerable risk, with 20,000 people in the store’s pension scheme. Those who haven’t retired yet will unfortunately see a reduction in their pension scheme of 10%. Why this has happened The future of the high street retailer has been uncertain ever since it was sold by Sir Philip Green in March 2015 to Retail Acquisitions for just £1. Since then the store needed to raise £100 million to keep afloat. So there you have it! Are you sad to see BHS go? We’ll keep you updated in the future as more information is published. Be sure to keep an eye on our social media sites for news updates!