Beales’ directors expect the department store group to return to profit “shortly” after its completed company voluntary arrangement (CVA), which allowed it to exit 10 loss-making stores.
Beales, which was founded in 1881, gained approval for its CVA just a day after BHS also gained approval for its CVA proposals in March. BHS, however, entered administration in April and pulled down the shutters at the final tranche of its stores last month.
Beales’ advisors KPMG filed a notice of completion of its CVA at the High Court on 7 September. The group is expected to comprise “around 20 stores” from January 2017, including all of its largest branches. It had 30 stores immediately prior to the CVA.
The firm’s directors said: “The reconfigured Beales group is well financed. Trading profits and cash flow are showing satisfactory improvements under the new management team.
“The business is expected to return to profit shortly, as the benefits of rationalisation and the elimination of loss-making sites flow through.”
As previously reported by Drapers, Beales is set to close its store in Bolton early next year and in May, the firm said it would close four other stores. Winchester and Rochdale were also part of the CVA, while King’s Lynn and Horsham were not, and closed after the retailer decided not to renew the leases.
Beales was at the centre of a power struggle last year, which culminated in property magnate Andrew Perloff, owner of property investment firm Panther Securities, winning control of the business. Perloff made an offer through his investment vehicle, English Rose, in January 2015 that valued Beales at £1.2m.