With news of Debenhams’ crashing losses of almost £500m hitting the headlines this week, with a third of its stores likely to close over the next five years, the Beales department store group – which sells gifts, homewares and housewares alongside furniture, fashion and beauty – is another in a long line of retail multiples about to undergo a restructuring.
In a management buyout for an undisclosed sum, chief executive Tony Brown bought 97 per cent of the shares this week, backed by a private equity group. He worked at Beales from 2008-13, returning as chief executive in 2017.
“It all comes down to securing funds for future investment in the business and we’ve managed to secure those funds but under a different ownership structure,” he told the Bournemouth Daily Echo.
The announcement comes shortly after Beales published its annual accounts, where losses, after exceptional items, had fallen by 56%. Over the past two years the company – which owns 21 stores – has looked to reduce costs by closing loss making outlets, with further steps taken to improve productivity.
The first Beales store opened its doors in Bournemouth in 1881. In 2010, the retailer bought rival Westgate.
Top: The Beales department store in Bournemouth.
