Department store chain Beales is asking landlords at some of its locations to cut its rent by up to 70% in order to avoid branch closures. As part of a Company Voluntary Arrangement (CVA) the chain has split its estate into two parts, consisting of 24 sites which will see its leases retained at current rents which it will now be paid monthly rather than quarterly.
For the remaining 14 locations, Beales is seeking to pay 30% of its current rents for 10 months whilst negotiations continue. Rob Croxen, restructuring partner at KPMG and proposed 'supervisor' of the CVA, said: “Founded in 1881, Beales is a familiar face on the high street of many towns and cities up and down the country. However, in recent years, the profitability of certain stores has been hampered by expensive legacy leases which were agreed many years ago.
“This CVA seeks to strike a balance which provides a fair compromise to the landlords, while allowing the viable part of the business to move forward.”
