THE Basingstoke branch of BHS could be under threat of closure after the company announced that it may have to shut 40 of its 164 branches across the country.

The retail company, which has been running at a loss for "many years", highlighted a problem with "rents that are too high" as a cause of the group underperforming financially.

The department chain was sold last year for £1 by Sir Philip Green.

Staff from the Basingstoke branch, in Festival Place, have been in touch with The Gazette today to say they were told this morning that the store may close.

Darren Topp, CEO, said: "Some of our stores are loss making as we are being charged rents that are too high relative to today's market."

He added: "Although a difficult process to go through, this sets in motion the comprehensive updated turnaround plan that we have identified, and gives British Homes Stores a secure financial footing from which to grow and deliver sustainable profitability.

"BHS will continue to trade as usual and we thank our staff and customers for their continued support."