Struggling department store BHS is expected to file for administration around lunchtime today, with the loss of 11,000 jobs.

Boss Dominic Chappell wrote to employees on Sunday warning that the firm was in danger, saying: “It is with a deep heart that I have to report, despite a massive effort from the team, we have been unable to secure a funder or a trade sale.”

He added: “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 your heads held high, you have done a great job and remember it was always going to be very, very hard to turn around.”

Mr Chappell’s Retail Acquisitions bought the 88-year-old company from Sir Philip Green for £1 last year although unsustainably high rents and large amounts of debt have all contributed to the downturn in the company’s fortunes. The company was given a lifeline in the form of a CVA last month, which nevertheless failed to help the situation.

The company’s pension fund, which has a £571 million deficit, is understood to be unaffected by any move into administration.

Recently, the company managed to raise just £52 million rather than the £100 million it anticipated from selling its Oxford Street store and its site in Sunderland.