THE honorary president of Beales has praised its management, who won backing for a deal which may have saved it from going into administration.

Creditors voted 90 per cent in favour of a company voluntary arrangement (CVA), which drastically cuts the rent on 14 of the department store sites, including the Brooks Centre in Winchester, while terms are renegotiated.

Nigel Beale, whose great-grandfather John Elmes Beale started the business in 1881, said morale had been turned around under chairman Stuart Lyons.

Mr Lyons was appointed last year after the investor Andrew Perloff bought the business for just £1.2 million.

Mr Beale said: “I was very flattered that the new regime invited me to remain as honorary president of the company.

“I have to say I have enormous respect and affection for Stuart Lyons, whom I’ve known for many, many years.

“The staff love him, the managers love him. There’s the sort of commitment and morale which I think will pick the business up.”

The company had warned it could go into administration if creditors did not back the CVA and drastically reduce the rent on loss-making stores. Beales had said the rents on the 14 stores – which did not include Poole or the flagship Bournemouth branch – were “dragging the group down”.

Mr 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.”

He added: “These legacy rents have been dragging the group down. Our landlords now have the opportunity to restructure them on equitable terms.”

The CVA proposal before creditors said: “If the CVA is not approved at the relevant meetings, it is likely the company and Beale Limited will no longer be able to trade as a going concern, which would result in the appointment of administrators.”

Beales proposed paying 30 per cent of the rent on the shops in question for 10 months, while it renegotiates.

It has 29 stores nationwide and made pre-tax losses of £4.6 million in the year ending November, 2014.

Since the takeover, Beales says it has reduced headquarters and operating costs by more than £1 million a year, negotiated improved terms for suppliers and concessionaires, and discontinued loss-making activities, including its “non-productive transactional website”.

Mr Lyons introduced a Back to Beales campaign to encourage customers to return to the store.