Shoppers in Bournemouth town centre have reacted to the news that department store Beales have gone into administration.
Beales, which is one of the countries oldest department store chains, has been a part of Bournemouth hughstreet since 1881 – with Bournemouth being home to it’s flagship store.
BUzz reporters went out today to discuss the news with local residents to see how they are reacting to it…
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What does it mean to go into administration?
When a company goes into administration, it means that the control of the company is passed on to what’s called a licensed ‘insolvency practitioner’, acting as an administrator – for Beales, this is KPMG.
Their aim is to pay off the companies debts to creditors as efficiently as possible, by leveraging it’s assets. This stops all legal actions towards the company that may be being put forward by creditors.
This happens to businesses that have a serious cashflow problem, that are running at a loss and are in debt.
Trading at Beales will continue for the moment, but doubts still remain over its long-term future.