Thousands Face Axe As BHS Rescue Bids Fail

The administrators said in a statement that while there had been multiple offers, none of them were able to complete the deal given the amount of capital needed to secure the future of the business.

It means that all 163 stores in the high street chain will be wound down with closing down sales over the coming weeks, marking a sorry end to the 88-year-old business.

The disappearance of BHS from Britain's high streets will be the biggest retail failure since Woolworths folded in 2008 with the loss of 30,000 jobs. 

Administrators Duff & Phelps will continue to try to sell off the stores but admitted that the jobs of 8,000 shop staff were likely to go, as well as 3,000 non-BHS employees who also work at the locations.

Philip Duffy, managing director of Duff & Phelps, said: "The British high street is changing and in these turbulent times for retailers, BHS has fallen as another victim of the seismic shifts we are seeing.

"The tireless work and goodwill of the existing management team and employees of BHS with the support of my team were not enough to change the fortunes of the company."

Dave Gill, national officer at shop workers' union Usdaw, said: "This news is a devastating blow for the staff and the shock waves will be felt on high streets throughout the country.

"There are some very serious questions that need to be answered, by former owners of the business, about how a company with decades of history and experience in retail has now come to this very sorry end."

The bitter blow comes despite a last-minute rescue bid led by former Mothercare executive Greg Tufnell - brother of the cricketer Phil - and backed by Portuguese investors.

BHS plunged into administration in April, a year after being sold by billionaire retail mogul Sir Philip Green to little-known consortium Retail Acquisitions (RA) for £1.

The demise of the retailer leaves the Pension Protection Fund (PPF) – the "lifeboat" funded by a levy on other retirement schemes – having to shoulder the burden of a £571m BHS pension black hole.

MPs have been sharply critical of previous owners including Sir Philip.

Last month a Commons committee investigating the collapse heard evidence that Sir Philip's Arcadia group had been informed that the head of the RA consortium, Dominic Chappell, had a history of bankruptcy and no retail experience.

Sir Philip - who is due to appear before MPs later this month - has hit back at what he calls his "trial by media" and calls for him to lose his knighthood.

BHS's history dates back to 1928 when its first store was opened in Brixton.

By Sky News photo: Sky News