Department store 'on brink of collapse' - risking jobs at Mansfield store

Beales, which has a large outlet in Mansfield's Four Seasons shopping centre, has filed notice of its intention to appoint administrators, as the retailer considers its options while seeking to complete its sale process.

Sources close to the firm have said it was still hopeful of being able to secure a deal, amid interest from at least two suitors including another retail firm at the end of 2019.

Beales appointed the advisory firm KPMG in the final retail trading week before Christmas to help advise on its “strategic and financing options” – including a sale of the whole company.

In a bid to fund its moves towards a “sustainable business model”, the firm said it needed funding to support a refreshed strategy, which included an overhaul of its product ranges and cost-saving efforts.

Beales, which has 22 stores across the UK, including in Bedford, Mansfield, Perth, Southport and Yeovil, completed a management buyout in October 2018 led by its chief executive, Tony Brown.

The firm is negotiating with its landlords to try and agree rent reductions, the BBC reports.

It was opened in Bournemouth in 1881, almost 130 years ago, but could join historic firms like Thomas Cook in being forced to close for good.

The news comes just days after high street giant GAME revealed it will be closing dozens of stores across the UK – including its Mansfield branch, also in Four Seasons.

The tech and gaming shop, which is based inside the town’s Four Seasons shopping centre, announced the closures of 40 locations in a new year announcement, which will also see its branches in Derby and Leicester shutting their doors.

A spokesperson for GAME said: “We are working closely with landlords throughout the UK to ensure that we do not have to vacate the 40 locations which could lead to a number of job losses.

“However, we are facing a challenging retail market and GAME with its extensive retail footprint, needs to restructure and landlords need to work with us in setting realistic, fair rents.”