The news that high street retailer BHS has entered administration has been widely reported in the media, with speculation over the future of the thousands of employees who work there and concern over the existence of a possible pension deficit.
The Government has tried to provide a measure of calm by issuing a statement confirming that BHS is currently still open for business as usual. It added that there are no plans for immediate redundancies or store closures, and that the administrators are looking to sell BHS as a going concern.
The Government also highlighted the importance of the retail sector to the UK economy, with retail sales (excluding fuel) amounting to £340 billion in 2015. The sector also employs around three million people, with the under-25 age group accounting for around a third of these.
However, despite the reassurance from Government BHS employees, who number around 11,000 across the UK, are understandably still very concerned about their job security and future prospects.
In addition, concerns have been raised over the amount of debt owed by BHS. The Guardian reports that this debt could amount to as much as £1.3 billion, which includes £52 million owed to trade suppliers and around £460 million to landlords. It is thought that the smaller supplier companies will be amongst the worst affected if BHS fails to pay its debts, and some are reportedly considering legal action to recover the money owed to them.
Contains public sector information licensed under the Open Government Licence v3.0.
https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/
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Sources
https://www.gov.uk/government/speeches/response-to-bhs-entering-administration
http://www.theguardian.com/business/2016/apr/26/bhs-1000-suppliers-face-unpaid-millions
