In my previous post I wrote about Subway and pizza restaurants, all due to business rates fees and the 2017 revaluation.
Now, another one to point at – House of Fraser.
Inviting shop windows, friendly customer services, choice of big brands, Estee Lauder, Hugo Boss, LSA… all looks great .. but inside… a silent battle to survive on the high-street retail arena.
Did you know that House of Fraser has announced plans to close some of their stores? The new Chinese owner intends to enter a company voluntary arrangement (CVA), under which it is likely to close some stores and renegotiate rents on others. According to the BBC, “A CVA is designed to help a struggling company to pay back a proportion of its debts over time”
Why? Well..according to real estate advisor, the Oxford Street store alone will pay £18.57m in business rates over the four years of the business rates cycle. This is until the next revaluation in 2021. This year, the store will pay £4.62m, marking an annual increase of £1.66m. Can you even imagine this amount of money to pay the government just to have the business on the high street.
"Retailers have been facing an uphill struggle on the high street in the face of weak consumer confidence and rising costs linked to the National Living Wage and hikes to business rates” says The Daily Telegraph. But we know that already. We wonder who is next!!!
If you run your own business, if you need business rate help, visit our website:
www.businessratehelp.co.uk or call us 01225-667-747