BHS on the brink of collapse: everything you need to know

BHS is expected to file for administration on Monday, putting 11,000 jobs at risk.

The high street store has been unable to find £60 million in emergency funding needed to pay wages and rent and stop it going under.

Darren Topp, the chief executive of BHS, said: “What was on the table wasn’t sufficient and we have been working in the last few days to fill the gap.”

During administration, the owners and creditors come together to work out the best way to organise a company as it collapses - before it is forced to go bust.

This could take the form of a buyout. Sports Direct is still in discussions to buy some of BHS's 164 stores, although it is understood that this deal is unlikely. Or BHS could secure a loan.

If a loan or a buyout can't be secured, 164 BHS stores face closure and thousands of jobs will be lost in the biggest high street failure since Woolworths went bust in 2008.

According to a letter to staff seen by the FT, wages are covered until the end of the month.

The letter to staff was written by Dominic Chappell, an ex-racing driver with chequered financial history, who led a group of investors under the name Retail Acquisitions which bought BHS from Topshop-owner Philip Green last year.

He ended his letter: "I would like to say it has been a real pleasure working with all of you on the BHS project, one I will never forget, you all need to keep you heads held high, you have done a great job and remember that it was always going to be very very hard to turn around."

Topshop owner Philip Green may still have to pay out money towards the company's pension scheme, which is running a £571 million deficit.

There are 20,000 people in BHS's pension scheme. Those who haven't retired will see a reduction in the pension scheme of 10 per cent.

BHS staff already claiming their pension have been protected by the Pension Protection Fund, which is backed by the government, since March. But even this scheme has limitations: older pensioners won't see any increase in their pension even if there is inflation for as long as they live.

The fear of collapse comes a month after BHS staved off a similar crisis by securing rent cuts of up to 75 per cent at 87 shops.

BHS's future has been uncertain ever since it was sold by Philip Green to Retail Acquisitions in March 2015 for just £1. Retail Acquisitions borrowed money from Green and other creditors after it bought the business.

It needed to raise £100 million to keep BHS afloat by selling property, borrowing more money and changing its agreements, but the amount raised from property sales have disappointed and its creditors have lost faith, leaving the future of the chain in doubt.

BHS could not immediately be reached for comment.