In just two days (Monday, April 25 and Tuesday, April 26,2016), two British retailers, BHS (British Home Stores) and Austin Reed filed for bankruptcy and this may affect 11,000 jobs. The collapse is due to the companies owing creditors and also having unprofitable sales and losses over the years.
BHS, which was founded in 1928, said it was entering administration (the UK equivalent for Chapter 11 bankruptcy) which raised questions about the fate of its 164 stores and about 10,000 jobs at risk.
Also, Austin Reed (founded in 1900), which is known for its shirts and suits have about a thousand employees and runs about 150 stores across Britain. The fate of their employees is dampened.
Both retail companies will now take directives and depend on their administrators, who will take over the day-to-day business and decide whether to revive or sell off the companies in parts.
These companies once had well known brands, but suffered decline as young shoppers have shunned their products to other competitors.
The collapse of both retail companies is as a result of the 2009 downfall of another major retailer, Woolworth, which closed shop when they had financial crisis after being in operation for over 100 years. That closure reportedly put 27,000 people into the employment market in the UK.