The ‘profitable’ Skegness Beales Department Store will be unaffected by proposals announced by the company today (Monday) according to bosses.
The business has put plans in place ‘to ensure its long-term viability’ through a Company Voluntary Arrangement which will see selected landlords invited to restructure their leases.
Beales chairman Stuart Lyons said: “Most of Beales’ stores are profitable, including our store in Skegness, 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.”
The proposals, due to be put to meetings of shareholders and stakeholders on March 24, will see the landlords of loss-making stores asked to reduce Beales’ rents or take the premises back.
Bosses say that the relationship with ‘suppliers and concessionaires’ will not be affected.
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.