Angela Eagle MP, Shadow First Secretary of State and Shadow Secretary of State for Business, Innovation and Skills, speaking following the announcement that BHS would file for administration, said:

“The 11,000 hard-working employees at BHS will be deeply concerned by this news.

“The events at BHS highlight the need for the Tory Government to get to grips with the challenges facing our high streets.

“Reports suggest that the business which has accumulated a pension black hole of £571 million, paid out hundreds of millions of pounds in dividends to shareholders under the former owners. BHS workers who are facing redundancy and cuts to their pensions will rightfully be raising questions about whether this was appropriate.”

Notes 

• BHS has been unable to secure a funder or a trade sale, as confirmed by Dominic Chappell, their owner. It has failed to secure the funding that it needed to pay wages and its rent after emergency talks broke down. Reporting over the weekend suggests that BHS will be going into administration as soon as this morning (Monday 25 April), so there is now a real risk to the 11,000 strong workforce. 

• The BHS pension fund was in surplus of at least £3.4 million in 2008 but reportedly now has a deficit of £571 million. 

• There has been criticism of the Government’s approach to our High Streets. Speaking to a House of Commons Select Committee on Sept 3rd 2013, Mary Portas who carried out an independent review for the then coalition Government t into the High Street said: “I’m not sure how big [a priority] it is… I don’t think it’s one of his top priorities,”