Creditors have overwhelmingly backed proposals from the operators of a Lynn department store that could see its rent slashed by as much as 70 per cent.
Earlier this month, the Beales Department Store group announced plans to seek a Company Voluntary Arrangement (CVA), to renegotiate leases which it claimed were no longer sustainable.
The company’s Lynn branch was among almost half of the company’s sites where an agreement was being sought to pay just 30 per cent of current rent charges for 10 months, while talks take place on new arrangements.
Under the terms of the agreement, landlords of those stores will be asked to re-structure their lease agreements or repossess the buildings.
In a statement, the company said its proposals had been accepted by more than 90 per cent of its creditors at a meeting in London today.
Chairman Stuart Lyons said: “This vote gives Beales a unique opportunity to restore the group to financial health.
“We are extremely grateful to our business partners for their overwhelming support.
“These legacy rents have been dragging the group down. Our landlords now have the opportunity to restructure them on equitable terms.”
Supervisors had been appointed from auditors KPMG to oversee the arrangements for the agreement.