South: BHS victim of high-street-only retail model, says Menzies

Commenting on the news that BHS has been placed under administration, Simon Underwood, partner and business recovery specialist at accountancy firm Menzies, said: “This does not come as a shock and is symptomatic of the unforgiving high street-only retail model.

"As the process of carving up the firm’s assets begins, stores will be assessed for profitability and viable sites are likely to be purchased by other retailers. Those considered unviable may be repurposed for other uses such as town-centre leisure facilities. Of the retailer’s 164 stores, it is likely that about 80 could still be profitable.

“A major thorn in the side for the administrators is likely to be the company’s £571 million pension deficit, which will make it more difficult to secure a sale of part or all of the business. As the battle between ‘clicks and bricks’ intensifies, it is becoming clear that an online retail function is essential for success in today’s highly-competitive retail sector.”