The BHS Liquidation Of The Old British Department Store, Which Applied For Bankruptcy Trustee In April, Is About To Take Place.

BHS department store

Unable to find a suitable buyer, a British veteran who applied for bankruptcy trustee in April. Department store company BHS The liquidation is coming soon, accompanied by 163 vacant high street storefronts and 11 thousand unemployed people.

BHS bankruptcy trustee Duff&Phelps revealed on Thursday that although the past five weeks had been purchased by many parties, their rescue deals could not provide enough cash for BHS to rebuild its business. Buyers who offered to buy will include the largest in the UK. Sports goods The retailer Sports Direct International PLC (SPD.L) and football club Newcastle Newcastle's boss Mike Ashley, BHS former chairman Allan Leighton (also a British retail giant, served as the chief executive officer of the UK integrated services retail group, chairman and chief executive of the supermarket giant) and the former chief executive of the mother and baby retailer, the unidentified Portuguese investor.

BHS headquarters office staff were disbanded on Thursday, and 163 BHS department stores will complete their work in the next few weeks after completion of the clearance. 8000 stores staff will lose their jobs, and 3000 posts related to BHS may not be guaranteed. Unless buyers are willing to buy the BHS brand from the liquidator, the 88 year old department store will eventually disappear, making BHS the largest bankruptcy case in the UK's high street retail industry since the closure of Woolworths Group PLC in 2008. Austin Reed, an old British menswear retailer who declared bankruptcy after one day after BHS entered bankruptcy trusteeship, is also winding up this week because it can't find buyers.

The $571 million pension gap is one of the main reasons for the BHS rescue deal. The British retail tycoon Philip Green Philip Green, who sold BHS in the symbolic 1 pound in 2015, was blamed for this. Some members asked that Philip Green, known as the "retail tyrant", must answer in the BHS bankruptcy hearing that the pension of the department store was surplus from a profit to a loss in the 15 years of operation of BHS. But he sold BHS to 1 pounds to sell the new old board Retail Acquisitions, which had been bankrupt for three times and had no retail experience. The latter also made millions of pounds in the dozen months of having BHS. Some members also said that Philip Green had almost squeezed all the value of the group before selling BHS, including a dividend of 420 million pounds from four years after the acquisition, and the dividend of other investors was as high as 180 million pounds.

In addition, potential buyers were deterred by Duff&Phelps's request to advance BHS 100 million stores to support the operation of the 163 stores.

Retail Acquisitions consortium leader and former racing driver Dominic Chappell will be asked to attend the hearing in June 8th and will turn to Philip Green a week later. The court documents show BHS arrears his Arcadia Group Ltd. of about 40 million pounds.

BHS former boss Philip Green

British Home Stores, founded in 1928 by a group of American businessmen, is one of the most familiar department stores in the UK. Philip Green bought BHS from Storehouse PLC in 2000 at 200 million pounds. After two years, the Department was merged into Arcadia Group Group, a famous British high street brand with Topshop, Topman and Miss Selfridge.

Analysts say that BHS has been stagnant since the 80s of last century. Even Next PLC (NXT.L) and Marks and Spencer Group PLC (MKS.L) Marsha general store are facing big or small troubles in the current grim retail environment, coupled with strong competition from fashion manufacturers such as fast fashion brands such as the likes of "fast" brands such as "the" and "fast" brands.

BHS has been losing money for the past 7 years. According to the non fashion Chinese network (nofashioncn) data, the group lost 69 million 900 thousand pounds in 2013 fiscal year before tax, with a total of 675 million 700 thousand pounds, a 3.5% decrease from the same year. The net loss in fiscal year 2014 expanded to 21 million pounds in the previous year's 19 million 200 thousand pounds. Philip Green, in the Arcadia Group Ltd. Holdings Taveta Investments Limited 2014 fiscal year report, pointed out that since the department store industry continued to be difficult, the business of BHS has always been a challenge.

Retail Acquisitions chairman Keith Smith said last year that when it bought BHS, it said it plans to inject 160 million pounds into the Department to help it resume its profits, but Retail Acquisitions's fund-raising process is not smooth.

Analysts estimate that BHS's main competitors, Marks&Spencer Group PLC, Marsha's department store M&S and cheap clothing retailer Primark, will be the best recipients of BHS's closures. The two brands ranked first (8.7%) and third (6.3%) in the UK's clothing market share in 2015, second Next PLC (7.5%), and BHS's market share of only 1%. Target customers, older clothing discount retailers such as Matalan Ltd. and Bonmarche Holdings PLC (BON.L) and Asda Group Ltd., are also expected to benefit from their self built clothing brands.