UPDATE 31/3/2016 - Proposals for the CVA have been approved by creditors (over 90%) which means some Beales stores will only need to pay 30% rent for the next ten months to help with cash flow. While 30 jobs have been saved, negotiations will continue with landlords regarding future trading.
Rob Croxen said in a statement, "The creditor vote in favour of the CVA proposal will allow Beales to take its first critical step towards turning the business around. This is a positive outcome for Beales’ creditors and good news for customers and employees."
08/03/2016 - With 34 stores across the country, Beales is proposing a company voluntary arrangement to creditors and landlords with the hope to reduce rent over 14 of its stores.
The retailer, founded in 1881, wants to reduce rent in those stores by 30% for ten months while there are negotiations on closures in the future.
If the CVA goes ahead, the remaining stores, including its flagship store in Bournemouth, would see payments change from quarterly to monthly to help improve cash flow.
Rob Craxen from KPMG has been appointed supervisor of the CVA and will prepare the proposal for creditors over the next few weeks. The creditors meeting will be held on the 24th March – over 75% of creditors (by value) must approve for the CVA to go ahead.