PPF and administrator in discussions over possibly placing BHS into liquidation
The Pension Protection Fund (PPF) is in talks with BHS' administrators over placing the retailer into liquidation, as fears grow that the company cannot be saved.
The PPF, which is the company's largest unsecured creditor, is thought to have entered the discussion because it wants to maximise the potential returns for creditors.
The conversations between the PPF and Duff & Phelps, which Sky News first reported today, do not mean that there is no chance the retailer will be saved, but they do highlight the growing urgency of the situation.
Various well-known retail names have been reported as being interested in snapping up BHS, including Matalan founder John Hargreaves, Select Fashions owner Cafer Mahiroglu and Poundstretcher. Last week, it was understood that new owners for the retailer would be announced early this week.
Insiders said, however, that a liquidator will likely be lined up if the sale cannot be completed by the end of the week.
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A spokesperson for PPF declined to comment.
BHS was placed into administration last month, putting 11,000 jobs on the line. At the time of the collapse, the retailer's pension scheme deficit was worth £571m. The PPF has previously said that bailing out the pension scheme will cost it £275m.
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The administration has sparked two parliamentary inquires, one from the Work and Pensions committee and one from the Business, Innovation and Skills committee. So far, they have taken evidence from the PPF, the Pensions Regulator and various advisers to the company.
Both Sir Philip Green and Dominic Chappell are also due to give evidence. In March 2015, Green sold BHS for £1 to Retail Acquisitions, which Chappell is the largest shareholder of.