DEPARTMENT-STORE chain Beales has warned it could collapse into administration if it fails to find a last-minute buyer, with more than 1,000 jobs at risk.

The Bournemouth-based retailer is understood to be hopeful that a rescue deal can be secured but could still be forced to enter insolvency.

Last month, Beales hired advisers at KPMG to lead a strategic review in order to find a profitable future for the business.

It is now in talks with landlords over rent reductions and has reportedly spoken to two potential buyers: a venture capital investor and a rival retail business.

The chain, which has 22 stores, is the latest retailer to feel the pressure as business rates soar and more people choose to shop online.

Collapsed retailer Mothercare disappeared from the high street on Sunday after decades in business, closing all 79 stores and losing 2,500 jobs.

Fellow retailer Debenhams also confirmed that 19 of its 160 stores will shut shop by the end of next week, with a loss of 660 jobs expected.

General secretary of shopworkers’ union Usdaw Paddy Lillis told the Star: “The scale of company administrations we have seen in recent years is devastating, not just for staff but also for our communities and shopping centres.

“Usdaw is campaigning for the urgent action needed to save jobs and protect our local high streets.

“We need a government-led clear and coherent industrial strategy for retail to address the growing crisis on our high streets – as we have called for through our Save Our Shops campaign.”