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.