The BHS administrators must now aim to achieve as a primary objective the rescue of the company (as distinct from the business carried on by the company) as a going concern or, as second objective, a better result for the company's creditors as a whole than would be likely if the company was wound up (without first being in administration) in accordance with the Insolvency Act 1986.
Once the administrators have collected the relevant statements of company's affairs from directors and key employees, they normally have (within eight weeks from the date of their appointment) to prepare a statement of how they propose to conduct the administration outlining mainly (a) which of the statutory purposes of administration the administrators intend to achieve and how the administration will end after the achievement of that purpose and (b) any asset sales or disposals made since the company entered administration and the reasons for doing so. The proposal will also contain details of the basis of the administrators’ remuneration.
High Street retailer British Home Stores (BHS) has filed for administration, putting 164 shops and almost 11,000 jobs at risk. The administrators Duff & Phelps will now try to find a buyer for all or part of the 88-year old business, but in the meantime BHS will continue to trade. They said BHS had "no alternative but to put the group into administration". If a buyer is not found, it would be the biggest High Street collapse since Woolworths. "The group has been undergoing restructuring and, as has been widely reported, the shareholders have been in negotiations to find a buyer for the business," administrators Philip Duffy and Benjamin Wiles, of Duff & Phelps, said in a statement. "These negotiations have been unsuccessful," they said.