Beales agrees deal with landlords

Department store group Beales has been given a lifeline after its creditors voted in favour of the retailer’s company volunteer arrangement.

Beales’ adviser, KPMG, said that 93 percent of creditors voted in favour of the plan that will reduce rents for 11 of its 29 stores, including stores in Rochdale, Bolton, Yeovil and Winchester.

KPMG restructuring partner Rob Croxen, and supervisor of the company voluntary arrangement rescue deal, said: “Today’s creditor vote in favour of the CVA proposal will allow Beales to take its first critical step towards turning the business around, tackling head on the issue of onerous legacy leases which have hampered the organisation in recent years.

“A company can only propose a CVA when the alternative is administration and it must always offer a better return to creditors. In this way, both the creditors and the company are able to fix an underlying business issue without going through a full trading administration – a positive outcome for Beales’ creditors, and good news for customers and employees.”

The Bournemouth-based retailer, founded in 1881, will reduce its rent by 70 percent on 11 stores for 10 months while it negotiates with landlords. The stores are Abingdon, Bishop Auckland, Bolton, Hexham, Keighley, King’s Lynn, Redcar, Rochdale, Saffron Walden, Winchester, and Yeovil.

The other 18 stores, including its flagship in Bournemouth, are unaffected.

Images: Beales Saffron Walden