The Courier & Advertiser (Perth and Perthshire Edition)
Beales collapse casts shadow on Perth high street
Administrators called in but fight to save jobs continues
Beales department store has plunged into administration, putting jobs at risk and sparking concern for the future of Perth city centre.
Joint administrators from KPMG were appointed by the crisis-hit retail outlet yesterday after the company’s search for a last minute buyer proved unsuccessful.
Worried politicians have raised fears about the collapse of the company with SNP MP Pete Wishart saying the implications “will be huge” if the business cannot be saved.
Conservative MSP Murdo Fraser called the announcement “a real concern” following the collapse of McEwens at the same landmark building in 2016.
Will Wright, joint administrator, said Beales found trading in recent times “to be incredibly tough”.
The administrators have retained all members of staff to assist with trading in the 23 stores which will be kept open as a going concern while KPMG assess options for the business.
Employees at Beales department store in Perth are facing an uncertain future after the company collapsed into administration.
Worried politicians have said the implications “will be huge” for the city centre if a solution cannot to be found to save the troubled branch in Perth.
The retailer appointed joint administrators from KPMG yesterday morning after announcing last week it would struggle to continue if it did not find a last-minute buyer.
The company employs 1,052 members of staff across 23 stores in the UK, with the Perth branch its only outlet in Scotland.
All members of staff are currently being retained by the administrators who are continuing to trade through the network as a going concern while they assess their options.
SNP MP Pete Wishart has called for the Perth branch to be included in a “slimmed down” version of the company if that is the route taken by KPMG to save the chain.
Mr Wishart said: “It will be a very worrying time for staff members and the implications on the high street will be huge if a solution cannot be found.
“It will now be up to the administrators to see what can be done to try and save the business.
“I am already hearing sources close to the company talking of trying to salvage a slimmed down version of the business going forward.
“I will be making the case for the Perth store to be a part of this plan.”
Beales is located in the landmark building on St John’s Street in the Fair City which was home to McEwens for nearly 150 years before it too collapsed into administration in May 2016.
Conservative MSP Murdo Fraser said he was worried about the future of Perth city centre following the announcement.
Mr Fraser said: “This is very sad news indeed and is a real concern regarding the future of the store.
“The current high level of business rates is definitely a major factor in putting pressure on High Street retail shops.
“The Scottish Conservative Party has produced budget proposals which we will put to Finance Minister Derek Mackay and these include a review of business rates.”
Will Wright, partner at KPMG and joint administrator, said Beales had found trading in recent times “to be incredibly tough”.
Advisors from KPMG were initially engaged by the business in December to explore the possible sale and refinancing opportunities but despite interest the process did not secure any solvent solutions for the company.
Mr Wright said: “With the impact of high rents and rates exacerbated by disappointing trading over the Christmas period, and extensive discussions around additional investment proving unsuccessful, there were no other available options but to place the company into administration.
“In the coming weeks, we’ll endeavour to continue to operate all stores as a going concern while we assess options for the business, including dealing with prospective interested parties.”
Beales was founded in Bournemouth in 1881 and sells a range of furniture, fashion, toys and cosmetics.