Tue, 14 Jan 2020 | ADMINISTRATION
Department store chain Beales is in talks with two potential buyers as it looks to avoid entering administration.
Beales CEO and owner Anthony Brown confirmed that the company was in talks with a venture capital firm and a rival retailer over a potential sale. The company hopes to either confirm a sale this week or explore other options, once of which could be administration. It is also in rent reduction talks with landlords.
The retailer last month appointed KPMG to conduct a strategic review of the business and to explore financing options. Last week, it filed notice of intent to appoint administrators, providing it with 10 days’ protections from its creditors.
Beales is one of the UK’s oldest department store chains, having begun trading in 1881. It employs over 1,000 staff and operates from 22 stores across the UK.
Brown acquired Beales in an MBO in October 2018. For the year ending March 2019, the retailer saw its pre-tax losses more than double to £3.2 million, from £1.5 million the year before. Its sales saw a slight decline from £48.7 million to £48.3 million, leaving it with net debts totalling £15.8 million.
Brown said that Beales had suffered from difficult trading conditions and the “lunacy” of high business rates, but added: “We are confident that we have a solution for the business that will create a stronger if leaner Beales.”
“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’re going through a process and we hope to be able to restructure the business for a profitable future.”
The company produces and supplies a wide range of coffee products created using ethically sourced beans from South America. The core products comprise wholebeans, grounds, single-origin roasts, blends, cold brews and compostable pods.
LEASEHOLD
The company offers an extensive range of luxury cars, including vehicles from prestigious manufacturers such as Aston Martin, Ferrari, Lamborghini and Rolls Royce. The business operates with a unique showroom-free approach, utilising a dedicated onli...
FREEHOLD
The company offers the sale of fashion jewellery, lingerie, and sexual health products and toys, pyjamas, gym clothing, beachwear, and PPE. Priding itself on its high-quality products and exceptional customer service, the company offers its produc...
LEASEHOLD
03
|
Feb
|
Social media marketing firm acquired at up to 41.6x operating profit | BUSINESS SALE
Manchester-based social media and influencer marketing agenc...
03
|
Feb
|
Pub group planning to sell 1,000 sites as pressures on hospitality mount | COMMERCIAL PROPERTY
Stonegate Group, the UK’s largest pub company, is repo...
02
|
Feb
|
Babble hits 12 acquisitions in a year with double takeover | BUSINESS SALE
London-based cloud technology firm Babble has continued its ...
Sign up to receive our acquisition alert emails to get your FREE guide
10
|
Mar
|
£32m turnover Angus Steakhouse appeals to landlords with administration looming | ADMINISTRATION
London’s popular Angus Steakhouse chain has appealed t...
21
|
Jan
|
ProCook considering sale as it undertakes strategic review | BUSINESS NEWS
Kitchenware retailer ProCook is to undertake a strategic rev...
09
|
Dec
|
Administrators seek buyer for garden machinery firm | ADMINISTRATION
Shropshire-based garden machinery company Oakley’s has...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources