BHS goes into administration
 

Another big name set to disappear from our high street it seems.

http://www.bbc.co.uk/news/business-36123444

Re: BHS goes into administration
 

Its been coming for a long time.

Such a shame though,

Re: BHS goes into administration
 

Bit like M&S clothing, they've lost focus on their traditional market and don't really seem to be pulling in the punters.

Re: BHS goes into administration
 

Now gone into Administration, they are hoping that some stores may be saved by being taken over by other companies.

The National Insurance Fund is likely to be used to fund the remaining staff who will be made redundant.

This month's wages will be paid by the administrator.

Re: BHS goes into administration
 

It's a shame, but last time I went in there was 3 years ago to buy a present for someone, all the clothes were either sizes 10, 12, 22, 24 or 26. Nothing in between.

It's the pension deficit that needs addressing though. A £571m shortfall in the fund, and Sir Phillip Green has offered just £40m to the shortfall.

Re: BHS goes into administration
 

He need to make up the full amount.

Re: BHS goes into administration
 

Why, it's nothing to do with him. If there have been big jumps in salary, that will affect a final salary scheme. People are taking out a vastly disproportionate amount compared to what they have put in. It's like a ponzi scheme. You can get away with it as long as more money goes in, but as soon as it stops, eg people get made redundant, it collapses. The money paid into the fund in the past can never support the new higher levels of payouts.

Re: BHS goes into administration
 

So, the government makes every company to have a retirement scheme and employeers contribute to it.

The company then goes bust, the employees lose their retirement fund.

Is there a problem here I'm not seeing?

I seem to remember the same happening to Maxwell employees.

Re: BHS goes into administration
 

The Pension Protection Fund

Re: BHS goes into administration
 

He could do it out of the billion pound dividend he gave his wife in Monaco to avoid UK tax.

Re: BHS goes into administration
 

Last time I bought anything in BHS it was a couple of breakfasts in about 1998. It's a great shame for the workforce but inevitable in today's world IMHO.

I hope SPG is made to stump up towards the pension fund but doubt even that'll be enough.

Re: BHS goes into administration
 

Blimey, they are half way through refitting a massive store here in Swansea, theres a gaping big hole in the front of the building as they are modernising it.

Re: BHS goes into administration
 

Same thing? Truth seems to be a strange concept around here and elsewhere.

Maxwell spent(ie stole) the pension funds on propping up the share price.
The money in the BHS fund is still there. It just isn't enough to generate an income to retire at 60 with a final salary scheme.

Re: BHS goes into administration
 

Early editions are running with tales of impropriety

http://www.theguardian.com/business/...administration

Re: BHS goes into administration
 

And how many other final salary pension schemes were that different? The pension funds are SEPARATE from the businesses.

Re: BHS goes into administration
 

Who are you shouting at, me, the pension regulator or green himself who has offered tens of millions, what a bozo he must be, fancy offering 80 million quid when you don't have to because it's SEPARATE

Re: BHS goes into administration
 

Over the past 16 years, the BHS pension fund has fallen from a £5m surplus into a £571m deficit since Sir Philip Green bought it and l know l am no expert on anything but that does not seem right and proper in my opinion.

Re: BHS goes into administration
 

And how did he have any control over that? They are controlled independently of the business. It went from a surplus of £5m in 2008 to a deficit of £137.9m a year later in 2009. Did anything happen to MOST pension funds around that time? The business then starting paying in more with a 23 year plan. By the time he sold it the deficit was £225.6m and NOT £571m.

Re: BHS goes into administration
 

BHS executives describe Dominic Chappell as 'a liar' with his fingers in the till.

http://www.bbc.co.uk/news/business-36476860

Pretty damning to say the least.

Re: BHS goes into administration
 

When the last recession caused the collapse of value of UK pensions, I believe Green panicked as he believed his entire wealth could be destroyed.

Rather than being patient, recessions don't last forever and stock markets and pension fund values recover, he sold BHS quick. Hence the mess we're in today.

This is why most organisations today have scrapped final salary schemes for new members as they fear the impact of recessions (and people living longer) on the value of final salary scheme pension funds.

Re: BHS goes into administration
 

Ultimately, the funding of a final salary scheme (a.k.a. Defined benefit scheme) is the responsibility of the employer. A defined contribution scheme, on the other hand, is down to the money markets and is much safer for the employer. Final salary schemes were manageable as long as relaxed tax and accounting rules allowed companies to use them to smooth out the peaks and troughs in their performance. Once those rules were tightened and a certain Mr G. Brown started raiding the funds for tax, they became untenable for most, though to be fair it was the ones that had been most poorly managed that collapsed outright. Some of the better ones survive, if on less favourable terms. I was in a final salary scheme for 7 years with a previous employer. The terms changed while I was a member and are not now as good as they were, but the scheme has survived and is still open, about 10 years after I left. Mind you, with only 7 years contributions I'm not expecting to get very much out of it. :D

Re: BHS goes into administration
 

It's my day off today so sat here just watching some of the grilling Mr G is getting atm on sky live....all he seems to be doing it stuttering utter garbage. it seems like he doesn't have the slightest clue how BHS was being run as if he bought it and just run it down to the ground for a quick quid.

He claims he doesn't know how to transfer money from accounts related to BHS and his banks lol

Re: BHS goes into administration
 

I'd have a bit more respect for committees like this if they weren't full of people who've been complicit in any number of appalling government failures and errors of judgement.

Re: BHS goes into administration
 

Philip Green agrees to pay £363m into BHS pension fund.

https://www.theguardian.com/business...s-pension-fund

Re: BHS goes into administration
 

I'll believe when it happens..

Re: BHS goes into administration
 

Indeed words and promises are cheap as its action that counts.

Re: BHS goes into administration
 

If he doesn't, we should torpedo Lionheart. Come to think of it, we should torpedo Lionheart for the pure satisfaction;)

Re: BHS goes into administration
 

The article states ;