Around 11,000 jobs have been put at risk after BHS filed for administration.
The troubled retailer was in talks with Sports Direct to sell some of its stores, but those negotiations collapsed over the weekend. One of the big issues facing BHS is a huge pension deficit worth an estimated £571 million - it is understood that a buyer would only proceed if it did not have to take on that deficit.
A month ago, BHS' creditors agreed a deal which saved the company, in the short-term at least. It voted to close a number of stores, and reduce its rent on a sizable portion. However, its owners Retail Acquisitions said it still needed to raise a further £100m to continue trading, and has failed to do so.
A retail market expert has stressed that filing for administration does not mean BHS intends to close stores in the next few days, but is looking for a buyer.
Phil Dorrell, from Retail Remedy, said the company will be likely sold "store by store", explaining "that probably means the name will disappear".
He added: "The problem is their trading offer is in the 1980s.
"Their stores look a bit dated. They are behind the times."
Katie James, an insolvency expert at Blake Morgan, said: "Administration is primarily aimed at business rescue, so it is not certain that any or all of the BHS stores will close, particularly if the administrators can find a buyer. However, this doesn't help to alleviate the uncertainty faced by its staff.
"It is understood that the board have told the employees that they will be paid this month, but there is no guarantee about future pay. The administrators will be looking at all and any options to rescue BHS and its business, and as part of that process, they will be liaising with the representatives of the employees so that employees should look to those representatives and to the administrators for updates."
BHS was bought by Sir Philip Green for £200m in 2000, making it part of the Arcadia Group in 2002. But with "outdated stores" and much cheaper rivals like Primark, the retailer struggled to keep up with a quickly adapting fashion and retail market. In 2015, Sir Philip sold BHS for just £1, writing off £210m worth of debts in the process. The company still has £1.3 billion debts, however.