Time has run out for BHS.
The failed British department store chain’s remaining shops will shutter in August, which will force thousands of workers into unemployment, Sky News reported.
The company’s administrator Duff & Phelps announced Monday that all 114 remaining BHS locations will permanently cease trading and close down by Aug. 20. This going-out-of-business decision followed a rough financial time for BHS, which couldn’t find a buyer in June after it fell into administration. The first wave of closures were announced last week.
British MPs are displeased with Sir Philip Green, the Topshop tycoon who allegedly sold BHS for a small sum to Dominic Chappell’s Retail Acquisitions Ltd. last year. The Work and Pensions and Business, Innovations and Skills Committees accused Green of falling for “the unacceptable face of capitalism” and emphasized that he must provide a solution for BHS pensioners.
On Friday, the Cabinet Office also announced that it is reviewing Green’s knighthood. If the forfeiture committee finds him guilty of faulty entrepreneurship, Queen Elizabeth II may strip him of this honor.
Despite accusations, Green last week defended his BHS stewardship. He claimed that during his 15 years of ownership he invested 421 million pounds (about $552 million) into BHS. Even though he conducted this capital investment, BHS shareholders and Green’s family received almost the same amount (423 million pounds, or $555 million). Although Green financially benefited from his decisions, he failed to look out for the interest of the collapsing retailer.
At the moment, BHS.co.uk is closed. The website says consumers may go to any remaining BHS locations to buy all merchandise. The retailer will also honor its return policy for all online orders.
All BHS store locations are holding going-out-of-business sales until next month.