Department store Beales is latest casualty of high street decline

One of Britain’s oldest department stores has fallen into administration, putting at least 1,000 jobs at risk nationally.

Beales, which has 23 shops, including a branch in Keighley, has appointed KPMG as administrators after failing to find a buyer or new investment for the business.

The store began trading in Bournemouth in 1881.

Its Keighley branch forms part of the town’s Airedale Shopping Centre. It is close to a large, empty unit, which used to be occupied by Marks & Spencer until that store’s branch closed for good in 2018.

It is understood that there will be no immediate closures and Beales stores will continue to trade. The business had been trying to secure rent reductions with landlords and was negotiating with possible investors and buyers.

But a statement from KPMG explains: “Despite interest from a number of parties, this process did not secure any solvent solutions for the company, and as a result, the directors took the difficult decision to place the companies into administration.”

KPMG’s Will Wright, who is the joint administrator to Beales, told the BBC: “With the impact of high rents and rates exacerbated by disappointing trading over the Christmas period, and extensive discussions around additional investment proving unsuccessful, there were no other available options but to place the company into administration.

“Over the coming weeks, we will endeavour to continue to operate all stores as a going concern while we assess options for the business, including dealing with prospective interested parties.”

Beales’ chief executive Tony Brown led a management buyout of the firm in 2018.

Reacting to the administration, Brian Burke, director at business advisory firm Quantuma, said: “Beales’ trade performance suffered throughout 2019, in line with many of its competitors.

“This, coupled with a disappointing Christmas trading period and failure to secure rent reductions with landlords, is what ultimately pushed it into administration.

“As for what will happen next, KPMG has announced there will be no immediate store closures and that the business will continue to trade in administration with staff to remain employed and paid whilst a solution is found.

“It will now be hoped that the administrators can engage with all interested parties in order to agree and conclude a sale of some or all of the business and assets in order to maintain stores and preserve jobs.

“If a transaction cannot be concluded, Beales will be wound down to offer the best outcome to its creditor, as per the likes of Maplin, ToysRUs and Links of London.”