BEALES has seen its losses increase during the year in which nine of its stores were closed.

The boss of the Bournemouth-based department store chain says he remains cautious but that the business is now heading in the right direction.

Accounts just published for the year ending on April 1 this year reveal losses stood at £590,000, compared with £243,000 the year before. Turnover was down from £90million to £54.9m.

During the year in question, Beales agreed a creditor voluntary agreement (CVA) with its landlords to cut the rent at 10 loss-making branches out of its 29 stores.

It ended up closing eight of those stores, with another store following when the landlord gave notice.

Chief executive Tony Brown, who took charge after the period covered in the accounts, said: “The business has faced challenging trading over the last couple of years.

“My confidence still remains high that the direction we’re now taking is bearing fruit.”

Mr Brown, who previously held the top job at Beales from 2008-13, returned in May after executive chairman Stuart Lyons stood down for health reasons.

He has presided over the acquisition of the former McEwens store in Perth, Scotland, a revamp of product lines and the relaunch of the Beales Love Rewards loyalty card. The company’s retail website is due to return shortly.

Mr Brown said: “We’re starting to get real engagement from our customers for the product that we’re buying now and that confidence is demonstrated by our purchase of Perth and expansion in there.

“The board are confident with the direction we’re taking but I would also add a note of caution that every retailer is faced with the same challenge of an economy that’s a little bit nervous in the face of Britain’s exit from Europe and the exchange rate.

“There’s a lot of downward pressure on the business but at the moment we are confident in the direction that we’re taking and we’re seeing some positive results – but I remain cautious.”

Beales was bought by one of its principal landlords, Andrew Perloff of Panther Securities, for just £1.2m in 2015 when it was heavily in debt.

The company was founded in 1881 by John Elmes Beale, on the site where its flagship Bournemouth branch stands. It has another large branch in Poole’s Dolphin Shopping Centre.