National department store Beales has fallen into administration after failing to secure a buyer, it has been revealed.
The 140-year-old retailer – which has 22 stores in locations such as Bedford, Poole and Fareham – revealed today that it had appointed insolvency experts to manage the collapse.
It comes after the store reported annual losses of £3.1 million, up from losses of £1.3 million the year previous, citing falling sales and increasing costs.
It was revealed in December that the retailer had drafted in business advisors to explore “refinancing options”. According to the Sky News, Bournemouth-based Beales said it was keen to explore debt-raising options that would “enable it to accelerate its restructuring amid a brutal retail environment”.
“The group continues to acclimatise to the ever-changing landscape and challenges of the retail market. Investment is sought to deliver a sustainable business model for the future,” said a store spokesperson.
However, it has now been announced the store has failed to find a viable solution, potentially risking more than 1,300 jobs nationwide.
All 22 stores will continue to operate, but ‘closing down’ signs will appear in shop windows over the coming weeks, it has been confirmed.
“We’re still in active talks with various parties and those talks continue while we go into the administration process,” said Chief executive and owner Tony Brown.
“I’m still confident of a positive outcome.”
The news comes after Beales won creditors’ backing for a Company Voluntary Arrangement (CVA) in 2016, enabling the group to restructure without the threat of debt collection. Just one year later, directors took control of the company in a management buyout (MBO).
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