Uncertain Future For Wrexham’s BHS Staff As Chain Enters Administration

BHS has entered administration, placing the future of the Wrexham store and its staff in doubt, with the store open as usual this morning.

Rumours that the company were to enter into administration began on Friday – however a statement released on the company’s website over the weekend read: “BHS would like to advise that despite some press speculation it is not in, nor has applied to go into administration. The website is operating and taking orders as usual.”

This morning however the future of the 164 stores was thrown into doubt, with BHS confirming at a national level that they had indeed filed for administration, and staff informed around 11:30am.

In a letter to all 11,000 employees last night, BHS owner Dominic Chappell wrote: “It is with a deep heart that I have to report, despite a massive effort from the team, we have been unable to secure a funder or a trade sale.”

Staff have also been assured they would be paid for this month at least.

Duff & Phelps have been appointed as administrators and the stores will continue to trade as usual.

UPDATE: A statement released by Duff & Phelps this afternoon reads:  “The group has been undergoing restructuring and, as has been widely reported, the shareholders have been in negotiations to find a buyer for the business. These negotiations have been unsuccessful. In addition property sales have not materialised as expected in both number and value.

“Consequently, as a result of a lower than expected cash balance, the group is very unlikely to meet all contractual payments. The directors therefore have no alternative but to put the group into administration to protect it for all creditors.

“The group will continue to trade as usual whilst the Administrators seek to sell it as a going concern. Further announcements will be made as appropriate in due course.”

Duff & Phelps has been appointed administrator, who are probably more publicly known for their work as administrators to Rangers Football Club.

Wrexham’s BHS was open this morning as pictured above, with quite a few shoppers seen heading in and out of the store.

If BHS does leave Wrexham the left hand side of part of the newer section of Henblas Street could be all but empty, with three independent businesses still open the right.

The future of the Post Office on Henblas Street was also thrown into uncertainty last week – with the Post Office confirming that a consultation to move the Wrexham branch to WH Smith was underway.