The owner of BHS is working with private US investors to put together a rescue package for the collapsed retailer.

Dominic Chappell said he would look to save a "substantial majority" of the department store chain's 164 shops, including stores in Watford and St Albans, and continue the business under the BHS brand.

Speaking to the Press Association, Mr Chappell said: "The pension deficit was weighing us down and not allowing us to move forward. After the administration, when the pensions side of the business is sorted out, we will be able to move on. I'm working with US investors to buy a substantial majority of stores."

BHS collapsed into administration on Monday, putting 11,000 jobs at risk.

Mr Chappell acquired BHS for £1 from retail tycoon Sir Philip last year, taking on a £571 million pension deficit.

No details have emerged about which stores will be closed.