Oldham West and Royton MP Jim McMahon says the Government need to do more to help High Street businesses following the news that BHS is facing administration.
It was announced yesterday that 11,000 jobs – including around 55 at BHS’s Oldham store in the Spindles Town Square Shopping Centre – are at risk after talks regarding a £60m deal with investment firm Gordon Brothers collapsed.
The chain – which was bought last year by High Street mogul Sir Philip Green for just £1 – confirmed it is selling its Oxford Street store for around £30m in a bid to save the company from collapse.
It is thought Sports Direct are considering buying some of BHS’s 164 stores on a lease deal but have concerns over the £571m in pension deficit, part of overall debts of around £1.3bn.
The Oldham store – which sells clothing, electricals and furniture – was opened by Olympian Nicola White in November 2012 and kickstarted an upturn in trade in the town centre.
Mr McMahon has written to the Minister over the weekend demanding that action is taken.
Mr McMahon said: “My first thoughts are with those employed at the Oldham store and I hope a solution is found to safeguard these important local jobs.
“I have been pressing for the Government to wake up and see that all the warning signs for the future of the British High Street have been there for some time. Retailers with a high street store are at an immediate disadvantage when compared to online retailers because of Business Rates. It’s time the government took action to prove once and for all they are keeping up with 21st century retail and value the traditional British High Street.”
