DOZENS of jobs are under threat in Clydebank after the collapse of a department store.
British Home Stores (BHS) announced on Monday that it is filing for administration.
The store in Clyde Shopping Centre and is understood to employ around 50 workers.
It comes as the chain has gone through financial woes and failed to attract new investment.
Martin Docherty-Hughes, MP for West Dunbartonshire, said: “With around 50 jobs based in Clydebank affected, the closure of BHS would have a direct impact on local people and the local economy. Were the company to go into liquidation, it would be the biggest high street chain collapse since Woolworths, but they are not there yet.”
Martin Docherty-Hughes MP
Across the UK, approximately 11,000 jobs are threatened by the BHS collapse.
The company still has £1.3 billion in pensions to pay out and is unable to find £571 million of it, which means the deficit will likely have to be recovered from the public purse through the Pension Protection Fund, the government-supported rescue agency
Talks with Sports Direct to sell some of BHS’s 164 stores collapsed over the weekend, and it is understood any buyer would do so only if it did not have to take on the pension deficit.
In a letter to staff, BHS owner Dominic Chappell said: “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.”
Philip Duffy and Benjamin Wiles, managing directors at Duff & Phelps, have been appointed joint administrators of BHS.
Their spokeswoman said: “The group will continue to trade as usual while the administrators seek to sell it as a going concern. Further announcements will be made as appropriate in due course.”
Cllr Gail Casey, West Dunbartonshire councillor for Clydebank Waterfront, said: “The loss of jobs at BHS in Clydebank is a huge blow to the employees from Clydebank and surrounding areas. I hope that the workers will be well-treated by the company if they do not find someone to take over the business. The council has services in place to assist during this process and will be more than happy to assist where they can.”
Councillor Gail Casey
Cllr Marie McNair, ward councillor, told the Post: “I am sorry to hear the news of BHS going into administration, as they must be one of the longest tenants in the Clydebank Shopping Centre. I do hope that a buyer is found as soon as possible and my thoughts are with the staff at what must be an extremely stressful time for them.”
Councillor Marie McNair
Mr Docherty-Hughes added: “The hole in their employer’s pension scheme has been a large part of the problem, but with the company entering administration, employees in the scheme will now have their pensions paid through the UK Pension Protection Fund; cold comfort for those accessing their pensions from age 60 who I understand will receive around 10 per cent less.
“The period of administration also allows time for a buyer to be found and with the fundamental business in good condition, there is hope for a positive outcome.
“I will be watching this developing situation closely and my constituency team will be ready to help anyone who finds themselves in difficulty.”
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