Beales department store goes into administration closing 22 branches and putting more than 1,000 jobs at risk
- Beales began trading in Bournemouth in 1881 but is now at risk of going bust
- Administrators KMPG were drafted in after bosses failed to sell the business
- Stores nationwide are still trading today but website is ‘down for maintenance’
One of Britain’s oldest department stores Beales has gone into administration putting 1,300 jobs at risk in another blow for the UK High Street.
The retailer, which began trading in Bournemouth in 1881 and has 22 stores nationwide, have been forced to draft in administrators KMPG after failing to find a buyer for the business.
KMPG will look to sell the chain or break it up and sell its assets in order to pay creditors.
Beales bosses blamed spiralling business rates after the chain made a loss of £3.1million up to March 2019, but say they are still hoping for a ‘positive outcome’.
Shops are still open today although large ‘Closing Down Sale’ signs have appeared in the window of its flagship Bournemouth store and its website is down for ‘maintenance’.
It comes just days after Mothercare disappeared from the High Street with all of its 79 stores closing down and 2,500 staff now out of work.
Beales (Chipping Norton branch in Oxfordshire pictured), one of Britain’s oldest department stores, has collapsed into administration, putting 1,300 jobs at risk
Beales chief executive Tony Brown said: ‘We’re still in active talks with various parties and those talks continue while we go into the administration process.
‘I’m still confident of a positive outcome. While we’ve had a very positive response from all our landlords, the conversations with Bournemouth Christchurch and Poole Council are exceptionally difficult as they don’t want to set a precedent.
‘The precedent would be to end this lunacy of business rates.’
Last week Mr Brown said Beales fork out £440,000 a year in business rates for its flagship store in Dorset.
He said: ‘It is difficult trading on the high street. The difficulties are exacerbated by the lunacy of the business rates system.
‘We pay £440,000 a year in business rates on our Bournemouth store.
‘You can have a sensible conversation with the landlord but it’s impossible to have a sensible conversation with the council. We hope to have a stronger business at the end of the process.
‘I can’t predict which stores will stay and which stores won’t because it all depends on landlords and local government.
‘We are confident that we have a solution for the business that will create a stronger if leaner Beales.’
Mr Brown’s concerns over business rates have been backed up by the chairman of Bournemouth Town Centre Business Improvement District.
Martin Davies said Beales’ move towards administration was ‘not really surprising’ and has called for business rates to be scrapped.
He said: ‘This is not really surprising and is an indication of the stresses that retailers and the high street are facing at the moment.
‘I think that one of the fundamental things that needs very urgent reforms is national non-domestic rates.
‘Given the rise in interest businesses in all areas of the economy, basing a substantial taxation on physical occupiers of property is an outdated concept.
‘I think ultimately for the good of the business community as a whole, what we need to see is the absolute abolition of the rates and a change to the rates of corporation tax so that taxes are paid on profit rather than location.’
Beales bosses (Southport store in Liverpool pictured) blamed spiralling business rates after the chain made a loss of £3.1million up to March 2019, but say they are still hoping for a ‘positive outcome’
Which high street retailers have closed shops in 2018/2019?
The year has seen a bloodbath of Britain’s high streets – with many of the nation’s retailers shutting stores and axing jobs.
Here are some of the big name retailers which have lost out as they face fierce competition from the rise of online shopping
Carpetright
The carpet retailer is closing 92 stores across the UK. These closures represent nearly a quarter of all UK Carpetright stores.
Toys R’ Us
The UK’s largest toy shop went into administration in February 201, leading to an estimated 2,000 redundancies.
House of Fraser
The department store chain was on the verge of heading into administration but was rescued at the eleventh hour by Sports Direct owner Mike Ashley.
Maplin
The electronics giant has gone bust, closing shops across the country and putting thousands of jobs at risk.
Mothercare
The baby and toddler chain is closing 60 shops across the UK putting up to 900 jobs at risk.
Poundworld
Poundworld announced it was going into administration on June 11 after talks with potential buyer R Capital broke down, putting 5,100 jobs at risk.
Homebase
The DIY chain set to close 42 DIY outlets shut, putting around 1,500 jobs at risk.
Marks & Spencer
The retailer announced in May it plans to close 100 stores by 2022, putting hundreds of jobs at risk.
In August stores in Northampton, Falkirk, Kettering, Newmarket, New Mersey Speke, Stockton and Walsall all ceased trading.
The year has seen a bloodbath of Britain’s high streets – with many of the nation’s retailers shutting stores and axing jobs (Poundworld is pictured above)
Orla Keiley
Orla Kiely, the Irish fashion retailer collapsed in September and closed all its stores after a slump in profits.
HMV
In December HMV entered into administration with its flagship London Oxford Street having closed earlier this year.
Evans Cycles
Also in December bicycle retailer Evans started its first wave of store closures after having gone into administration in October. Sports Direct bought the retailer out of administration last year but still announced closures and changes to the brand.
L.K Bennett
Fashion brand L.Bennett announced it was filing for administration on March 1, 2019. Linda Bennett sent employees an email early in the morning to inform them of the news before it hit news outlets.