Double trouble for High Street

Firms face big bills in seven-day spell

STRUGGLING firms risk being tipped over the edge by a looming double whammy of bills.

This Sunday marks “Quarter Day” for many businesses, when they have to cough up three months’ rent in advance.

Seven days later new business rates will kick in with thousands of firms facing hikes.

The two coming at once could prove a killer combination for businesses battling to survive.

It comes after a torrid start to the year which has seen Toys R Us and Maplin go bust, a string of profit warnings from retailers and Jamie’s Italian, Prezzo and burger chain Byron announce a wave of restaurant closures.

Insolvency firm Begbies Traynor said yesterday 11,091 restaurants were classed as in significant financial distress – up 8% in the past year.

Before Christmas, nearly 45,000 retailers in general were in the same level of trouble – 22% more than a year ago. Julie Palmer, partner at Begbies Traynor, said: “The UK restaurant sector is facing a perfect storm of pressures ahead of this week’s quarterly rent day, with growing labour costs from the National Living Wage, subdued consumer spending and fierce competition from established high-street chains.”

Meanwhile, nearly 80,000 shops, pubs and restaurants in England face inflation-busting business rate rises from April 1, with thousands of large premises being hit with hikes of up to 32%.

Alex Probyn, from rates consultancy Altus Group, said: “It’s really tough right now and for those signalling financial distress, it will be a worrying time.”