Troubled retailer Beales has warned it is of risk of collapse.

It emerged at the weekend that Beales was negotiating with landlords over rent reductions in a bid to stave off the threat of administration.

The company employs 1,000 people at 22 stores, including in Kendal.

Meanwhile, it is also in talks with two potentials buyers. The BBC reported on is a rival retailed while the second is a venture capital investor.

Bosses at the Bournemouth-based chain announced in December that it has launched a formal sales process as part of a strategic and financial review being led by big four firm KPMG.

The company said it was looking to “deliver a sustainable business model for the future” including cost-saving measures and a refocus on homewares, small domestic appliances, fashion and shoes.

The retailer has had a torrid 2019 – posting a £3.1m loss for the year ending March 2019 = up more than a third on the year before.

The news comes as increasing numbers of retailers bemoan a weak Christmas trading.

Meanwhile, optimism has been expressed over the future of Kendal’s Beales store

Sarah Williams, manager of Kendal BID, said she believed the store would be safe if Beales’ future was secured – and that there would be no shortage of new occupants lining up “if the worst came to the worst”.