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BHS administrators have failed to find a buyer and will begin winding the company down, putting 11,000 jobs at risk, adminstrators Duff & Phelps has said.
BHS has 11,000 employees across 164 stores.
11 stores are in the North East, putting the jobs of around 550 employees at risk.
The North East stores are in:
- South Shields
- York (2) Coney Street and Monks Cross Retail Park
Philip Duffy and Benjamin Wiles, Managing Directors of Duff & Phelps, the administrators said:
Our thoughts today are with the employees. We thank them for their professionalism and hard work. We would also like to thank the great British public for helping us in our efforts to save BHS resulting in several weeks of significant sales.
As a result of the wind down all 163 stores will be in close down sale mode over the coming weeks and whilst continuing efforts will be made by the administrators to sell stores the jobs of 8000 members of staff are likely to go. A further 3000 jobs of none BHS employees who work in the stores may also be at risk.
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Supermarket chain Tesco have confirmed the locations of the 43 stores it plans on closing to cut costs, three of which are in our region:
- Bedlington, Tesco Superstore
- Whitley Bay, Tesco Express
- York Road Hartlepool, Tesco Express
90 jobs are at risk in Bedlington, 18 in Hartlepool and 15 in Whitley Bay.
But Tesco say these 123 positions are not expected job losses, because they will work with colleagues to try and find them alternative roles elsewhere and where that is not possible redundancy will be offered.
Tesco Chief Executive Dave Lewis said:
In January I announced that our performance as a business has fallen significantly short of where we would want it to be and that to protect the future of the business in the UK we would close 43 unprofitable stores.
The decision to close the stores has been exceptionally difficult to take. I recognise it will affect many hard working colleagues, our customers and local communities.
Our priority is to explain what this announcement means for our colleagues and wherever possible, offer them alternative roles with Tesco. We will continue to serve our customers through other local stores and our dotcom service."
Last year the chain came under fire for overstating their profits by £263m.
The decision is putting 2,000 jobs in danger nationwide.