Beales to shutter last remaining store amid budget changes
The business, which opened in Bournemouth in 1881, will close its last remaining store in Poole’s Dolphin Centre at the end of May
Beales, one of Britain’s oldest department stores, will shutter its last remaining store after more than 140 years of trading amid cost pressures arising from the latest budget. The business, which opened in Bournemouth in 1881, will close its last remaining store in Poole’s Dolphin Centre at the end of May.
CEO Tony Brown told The Telegraph that the upcoming rise in employers’ National Insurance contributions and the higher minimum wage will result in the business becoming “unviable”.
He said: “This, coupled with the risks and uncertainty of further tax increases in the coming years, have left us no other option. We have been working with the Dolphin Centre, who have been supportive, along with our investors to ensure an orderly exit.
“Our team has been informed, as have our suppliers. We will ensure the exit is managed and no one will be left with a financial loss.”
John Grinnell, manager of the Dolphin Centre, added: “We’re very sorry to see Beales go after so many years here. Our hearts go out to everyone affected by the store’s closure, and we’ll do everything we can to support former Beales employees to find employment elsewhere.
“We’re alarmed to see this happening to lots of retail businesses because of the new Budget and National Insurance increase.”
It comes as the rate of National Insurance paid by employers will rise from 13.5% to 15%, while the minimum hourly rate for workers aged 21 and over will rise from £11.44 per hour to £12.21.
In February 2020, the department store chain announced 32 job cuts at its head office in Bournemouth after entering administration. It closed 22 of its remaining 23 branches in March that year.
Founded in Bournemouth in 1881, Beales operated 23 department stores in market towns across the UK selling a range of furniture, fashion, toys and cosmetics. It employed over 1,000 members of staff prior to its administration.
Will Wright, partner at KPMG and joint administrator, said at the time: “For over a hundred years, Beales has been a stalwart of the high street in market towns up and down the UK, but like countless similar retailers, has found trading in recent times to be incredibly tough.
“With the impact of high rents and rates exacerbated by disappointing trading over the Christmas period, and extensive discussions around additional investment proving unsuccessful, there were no other available options but to place the company into administration.”
