Glasgow BHS staff 'in the dark' about their future

Up to 11,000 jobs are at risk and up to 164 stores are threatened with closure after the high street chain was placed in the hands of Duff & Phelps, the same firm which handled the administration of Rangers.

BHS has debts of more than £1.3 billion, including a pension fund deficit of £571 million, holding 20,500 pensions in its scheme.

READ MORE: Glasgow jobs at risk as BHS collapses into administration

The pensions watchdog said it has launched a probe to ensure the firm can meet as much of its pensions obligations as possible.

Notices displayed on the Sauchiehall Street store yesterday warned customers that they would not be entitled to refunds for any good purchased before April 25 with only exchanges offered before this time.

The firm, which has two city centre stores, failed to secure a £60 million loan last week, which left its rescue package roughly only half as big the consortium needed to save the business.

The chain will trade as a going concern, while it tries to find a buyer for the whole of the business. However, most experts say it is more likely to fold, with stores sold off to the highest bidders.

Stores in Glasgow were attracting a steady stream of customers yesterday, lured by discounted prices of up to 40%.

Staff spoke of their shock and said they had been given very little information from managers.

READ MORE: Glasgow jobs at risk as BHS collapses into administration

One employee said: "We haven't been told anything. We don't know if we have got a week or a month.

"We didn't think it would get this far.

"I've been here for 20 years but some staff have been here for 40. The internet has hit us hard but supermarkets too have a lot to answer for."

Ann Pettigrew, 81, from Govanahill, said: "I think it's terrible. All those people losing their jobs."

Tricia Hunter, 61, from Rutherglen, said: "I'm disappointed. It's a good store and I just feel sad it's shutting, never to be seen again."

Ann Knox, 65, from Kirkintilloch, said: "I'm gutted. I liked it for our age group.

READ MORE: Glasgow jobs at risk as BHS collapses into administration

"When I heard it had gone into administration, I thought I would come in for a bargain."

Ann's husband Andrew, 68, said: "I liked it because they have a lot of different sizes."

The retailer had accrued debts of more than £1.3 billion, including a pension fund deficit of £571 million.

Retail Acquisitions bought BHS last year for £1 from retail entrepreneur Sir Philip Green. Sir Philip bought BHS for £200 million in 2000.

Last month the firm said its creditors, who are largely its landlords, had backed turnaround plans to reduce the rent at half of BHS's stores and allow the chain to walk away from some leases early.

Rival retailer Sports Direct is understood to want to some of BHS's 164 stores, but will only do so if it does not have to take on any pension liabilities.

Retail experts said the firm has suffered from many years of under-investment, leaving its range and estate looking tired.

Julie Palmer, a partner at insolvency expert Begbies Traynor, said: "Sadly, as an underperforming brand that simply hasn't kept up with the pace of change in the retail sector and requires major investment, it looks increasingly unlikely that any buyer will be brave enough to salvage the business in anything like its current form."

The collapse is the biggest retail failure since Woolworths folded in 2008 with the loss of almost 30,000 jobs.