What are the options for BHS?

British Home Stores is struggling to make a profit and ITV News understands it is ready to file for administration.

What are BHS's options?

  • A buyout

Talks are ongoing with Sports Direct. Discussions are centring around a plan for the chain to buy some of BHS's 164 stores, however sources close to the negotiations told the Financial Times that a deal was highly unlikely.

  • Rescue package

A last-minute loan could help the ailing firm.

Retail Acquisitions bought the company in 2015 for £1 from Topshop owner Sir Philip Green. The chain had success when a reduction of rents was negotiated and the owners also tried to find more funds through property sales, including their lease on London's Oxford Street, but even this did not make as much money as had been hoped.

  • What will happen if BHS goes into administration?

The restructuring firm Duff and Phelps will likely try and find a buyer for BHS.

  • What will happen to the firm's problematic pension deficit?

The creditor rights to the fund were passed onto the government-backed Pension Protection Fund (PPF), an organisation that safeguards pension scheme members if their employer becomes insolvent, in March.

Administration would probably mean the pension scheme is bailed out by the PPF.

  • When will staff get more information?

If the retailer does go into administration, it is understood staff will be told about the collapse at a meeting at 11am on Monday. A statement posted on the BHS website on Friday insisted that the company is not in administration nor has it applied to be and that the website is operating "as usual".