1000 jobs at risk as Beales lurches towards collapse

1000 jobs at risk as Beales lurches towards collapse
Beales, founded in 1881, is facing an uncertain future even despite a change of hands in October 2018. (Image: Twitter)
// Beales warns it could collapse into administration unless it finds a new owner for the business, placing 1000 jobs at risk
// The retailer, one of the oldest department stores in the UK, is also negotiating with landlords for rent cuts
// Last month Beales appointed KPMG to undertake a strategic review of the business

Around 1000 staff are at risk of losing their jobs as Beales warns it is on the brink of collapse unless it can find a new owner to buy the business.

The department store retailer has filed notice of its intention to appoint administrators, as it mulls its future prospects amid a strategic business review that commenced last month.

Just before Christmas, Beales appointed KPMG lto conduct a strategic review of the business and to examine different options for refinancing.

READ MORE:  Beales up for sale amid wider business review

One the options included putting the Bournemouth-based retailer, which was founded in 1881, up for sale.

Beales is also negotiating with landlords in the hopes of securing cuts to their rent.

Sources speaking to The Guardian have said the retailer was still hopeful of being able to secure a rescue deal, with interest coming from at least two suitors.

Beales employs around 1000 staff and another 300 in concessions across its 22 stores.

In October 2018, Beales was sold in a management buy-out to group chief executive Anthony Brown.

“We are confident that we have a solution for the business that will create a stronger if leaner Beales,” he told the Daily Echo.

“It is difficult trading on the high street. The difficulties are exacerbated by the lunacy of the business rates system.”

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