Beales calls in administrator
DEPARTMENT store chain Beales has gone into administration, putting more than 1,000 jobs at risk in the latest blow to the high street.
The Bournemouth-based business, which began trading in 1881 and has 23 shops around the country, appointed KPMG as administrators after failing to find a buyer or new investment.
The company’s website has been taken down, but stores will trade as a going concern and all 1,050 or so staff have been retained as options are assessed.
Will Wright, partner at KPMG and joint administrator, 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.
“Over the coming weeks, we will endeavour to continue to operate all stores as a going concern while we assess options for the business, including dealing with prospective interested parties. During this period gift vouchers, customer deposits and customer returns/ refunds will continue to be honoured.”
In the year to March 2019, Beales posted a £3.1million loss, up from nearly £1.3million the previous year. It had been seeking to negotiate rent reductions with some of the landlords of its stores.
Its owner and chief executive, Tony Brown, has criticised councils for not helping struggling retailers.
He told the BBC last week that “councils really don’t care, because they get their business rates whether we’re there or not, because the landlord pays if the store closes”.
Fellow department store House of Fraser was bought by retail tycoon Mike Ashley’s Sports Direct after falling into administration in 2018, while Debenhams was rescued by its lenders after going into administration last year.