The owner of Sports Direct and House of Fraser has warned it may be forced to close some of its stores in renewed criticism of the government's handling of the coronavirus crisis.
Mike Ashley's Frasers Group, which initially refused to accept the closure of stores in March under the UK lockdown before issuing a grovelling apology, said the decision to delay the next revaluation of business rates until 2023 "kicked" high street businesses at a time when many were suffering deep financial pain.
Business rates had been widely blamed by the retail sector for bolstering a costs crisis before the virus was even heard of, with chains failing or seeking rescue deals as they battled rising minimum wage and rent bills at a time of weak consumer confidence.
Ministers have argued the delay will "reduce uncertainty" for businesses.
But in a statement to the City on Wednesday, Frasers declared the government had "buried its head in the sand on the critical business rates issue, raising unfair and uneconomic revenue sums from already distressed businesses".
The company said it meant paying "outdated" business rates, based on 2015 valuations, for the next two years and warned it must examine the "viability" of a number of the group's stores as a result.
It did not put a figure on the sites due to form part of the review.
The statement continued: "Not only has it has kicked the can down the road; it has also kicked businesses when they are clearly down.
"How many more businesses on the High Street have to disappear and jobs be lost before the government takes this issue seriously?
"How does the government reconcile its maintenance of a punitive and outdated business rates regime, with its predictable and devastating effect on the viability of bricks and mortar businesses, with its recent policy decisions
seeking to have customers return to our high streets?"
The measures include a temporary suspension of business rates for retailers, targeted VAT cuts and the Chancellor's so-called meal deal, titled Eat In To Help Out - giving diners' discounts from Monday-Wednesday.
Frasers Group is yet to update the market on how its portfolio of brands has performed in terms of sales during the crisis.
Shares are almost 40% down in the year to date.
A Treasury spokesperson said in response to the company's statement: "As part of a £22bn package to support businesses affected by coronavirus, we took the unprecedented step of suspending business rates for the retail sector for a year.
"We also introduced the job retention scheme, which has paid the wages of 9.5 million people.
"To provide businesses with greater certainty, we've also moved the next business rates revaluation so it better reflects the values of properties after the pandemic.
"Earlier this month we set out the second part of our support for the economy, giving businesses the confidence to retain and hire, including supporting jobs with a £1,000 Coronavirus Job Retention Bonus for employers."
https://news.google.com/__i/rss/rd/articles/CBMibWh0dHBzOi8vbmV3cy5za3kuY29tL3N0b3J5L2Nvcm9uYXZpcnVzLXNwb3J0cy1kaXJlY3Qtb3duZXItaXNzdWVzLXN0b3JlLWNsb3N1cmUtdGhyZWF0LXRvLWdvdmVybm1lbnQtMTIwMzQwODXSAXFodHRwczovL25ld3Muc2t5LmNvbS9zdG9yeS9hbXAvY29yb25hdmlydXMtc3BvcnRzLWRpcmVjdC1vd25lci1pc3N1ZXMtc3RvcmUtY2xvc3VyZS10aHJlYXQtdG8tZ292ZXJubWVudC0xMjAzNDA4NQ?oc=5
2020-07-22 18:23:39Z
CBMibWh0dHBzOi8vbmV3cy5za3kuY29tL3N0b3J5L2Nvcm9uYXZpcnVzLXNwb3J0cy1kaXJlY3Qtb3duZXItaXNzdWVzLXN0b3JlLWNsb3N1cmUtdGhyZWF0LXRvLWdvdmVybm1lbnQtMTIwMzQwODXSAXFodHRwczovL25ld3Muc2t5LmNvbS9zdG9yeS9hbXAvY29yb25hdmlydXMtc3BvcnRzLWRpcmVjdC1vd25lci1pc3N1ZXMtc3RvcmUtY2xvc3VyZS10aHJlYXQtdG8tZ292ZXJubWVudC0xMjAzNDA4NQ
Tidak ada komentar:
Posting Komentar