Beales plans rent revolution in CVA proposal

Historic department store Beales has announced a proposed company volunatry arrangement that will see changes to the leases at four of its East Midlands stores.

Beales outlets at Stockwell Gate and Four Seasons Shopping Centre in Mansfield, its Lumely Road, Skegness, and its Market Place, Spalding will be kept open at current rents, but Beales wants these to be paid monthly instead of quarterly for the next three years.

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. It’s particularly important to stress that none of the stores will close on day one, and employees, suppliers and business rates will continue to be paid on time and in full – something which we know from our work on previous CVAs is of critical importance to landlords.”

The company needs to secure at least 75 per cent creditor approval for its CVA. Creditors will vote on the CVA on 24th March.