Loss-making Beales in Saffron Walden has future in doubt
PUBLISHED: 16:19 07 March 2016 | UPDATED: 16:19 07 March 2016
A Saffron Walden department store's future could be in doubt.
Beales announced today (Monday) that the Market Place store is loss-making and they company was looking to change its lease.
The business is entering into a Company Voluntary Arrangement is looking to speak to landlords to “restructure” its leases. A meeting is due on March 24.
Landlords of loss-making stores will be asked to reduce rents of take the premises back.
Stuart Lyon, Beales chairman, said: “Most of Beales’ stores are profitable and are 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. Unfortunately, our store in Saffron Walden is one of them.”
He added: “We hope we will be able to agree a new rent with landlord. In the meantime we will continue to trade as normal.”