THE Beales department store in Hexham has escaped a cull which will see a third of branches closed by the end of the year.

Directors of J.E. Beale PLC announced on Monday that they expect the group to return to profit "shortly" following the completion of a Company Voluntary Arrangement (CVA) which will allow it to exit 10 loss-making stores.

The six-month CVA arrangement, which was agreed by the High Court in March, allowed time for the renegotiation of rental deals for 20 other stores, including Hexham, where the landlord is Buccleuch Estates.

Beales, which was founded in 1881 in Bournemouth, also has stores in Kendal, Bishop Auckland and Redcar. A full list of the 10 set to close is yet to be published.

However, it has been confirmed that all of the "largest branches" will be included in the new-look structure which will take effect from January 2017.

A spokesman for the business said: "We are delighted that our landlords at Hexham have been very understanding and therefore we have been able to agree a basis on which to continue trading there.

"The reconfigured Beales group is well financed. Trading profits and cash flow are showing satisfactory improvements under the new management team.

"The business is expected to return to profits shortly, as the benefits of rationalisation and the elimination of loss-making sites flow through.

"The directors wish to thank Beales' advisors, bankers, landlords, suppliers, customers, employees and all other stakeholders for their support, and look forward to the future with confidence."