The company has proposed a CVA, in a move similar to BHS last week.
The Bournemouth-based department store has pointed towards financial difficulties and the possibility of store closures, by signalling that it wants to pay a reduced rent for some of its less profitable stores.
Stuart Lyons, chairman of Beales, said: “Most of Beales’ stores are profitable, including the flagship stores in Bournemouth and Poole, which are unaffected by the proposal. However, a minority of our stores lose money because leases agreed some years ago are no longer sustainable due to changes in the economy and local conditions. These legacy rents have been dragging the group down. This is a unique opportunity to restore the group to financial health.”
On 24th March, meetings of shareholders and stakeholders will be called to approve the proposals. Landlords of loss-making stores will be asked to reduce Beales’ rents or take the premises back.