The Beales Department Store in Spalding will not be affected by company restructuring and will continue business as normal, the group has said.
Beales has announced plans to ensure its long-term viability through a Company Voluntary Arrangement in which it invites selected landlords to restructure their leases.
Meetings of shareholders and stakeholders have been called to approve the proposals. Landlords of loss-making stores will be asked to reduce Beales’ rents or take the premises back.
“Most of Beales’ stores are profitable,” said chairman Stuart Lyons, “including our store in Spalding, which is 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. “
He added: “These legacy rents have been dragging the group down. This is a unique opportunity to restore the group to financial health.”
Beales, founded in 1881, has 29 department stores across the country. It was returned to private ownership in April 2015, when it was acquired by Andrew Perloff and his family interests.
Panther Securities plc, the landlord of twelve Beales stores, has agreed to support the CVA proposals. The buying group Associated Independent Stores, Beales’ largest supplier, has also agreed to support them.