Rates relief package puts stores at risk, says Frasers
MIKE ASHLEY’S Frasers Group says it is considerpuing store closures and is unlikely to take on any former Debenhams sites after a “near worthless” business rates relief package in this week’s Budget.
The retail group – whose stores include House of Fraser, Sports Direct and Flannels – has issued a statement expressing its “disappointment” at the measures announced by Chancellor Rishi Sunak on Wednesday.
The Chancellor outlined a three-month extension to the business rates holiday for nonessential retail stores and then a six-month period where rates will be discounted to one third of the normal charge.
But he said there would be a maximum discount of £2m for closed businesses, which Frasers said “makes it a near worthless support package for large retailers.”
Newcastle United owner Mr Ashley has been among many who have long been critical of the business rates system, saying it is no longer fit for purpose in an age of growing online retailing.
But those critics were disappointed earlier this year when the Government postponed a review of business rates until later in the year to allow for the economy to return to some form of normality.
In a statement released this morning, the company said: “Whilst the retail industry as a whole has repeatedly asked for structural reform of business rates, none has been forthcoming. Frasers Group and many retailers would have expected suitable relief until structural reform is implemented.
“The £2m rates cap on ‘businesses’ from July 2021 to March 2022, makes it a near worthless support package for large retailers.
“For Frasers Group this cap will make it nearly impossible to take on ex-Debenhams sites with the inherent jobs created.
“It will also mean we need to review our entire portfolio to ascertain stores that are unviable due to unrealistic business rates.
“Frasers Group believes that retailers should pay the fair amount of rates in line with realistic rateable values, but instead we continue to have an unwieldy, overly complex, and out of date business rates regime.”
Frasers warned last month that it could take a £100m to its property portfolio during the pandemic.
It had earlier issued a profit warning due to the closure of its stores in the lockdown.
THE music venue in Swansea’s Albert Hall is to be run by the company behind The Depot in Cardiff.
The Depot, which has established itself as one of the biggest entertainment brands in the capital city, has confirmed it will be one of the first new tenants of LoftCo’s latest redevelopment project in Swansea.
The £8m refurbishment of the former opera hall on the corner of De-La Beche Street and Cradock Street is being led by Simon Baston, director of Loft Co.
Loft Co is also responsible for the development of The Tramshed in Cardiff, Goodsheds in Barry and the J-Shed in Swansea, amongst others.
Loft Co’s plans are to restore the 157-year-old building back to its original splendour, creating a mixeduse development which will include
The Depot as an 800-capacity music and entertainment venue, as well as dedicated new spaces for lifestyle businesses and offices. The full refurbishment is expected to take between 12 and 18 months.
Simon Baston said: “At Loft Co, we pride ourselves on creating spaces that are unique, accessible and most importantly, fun. We are excited by the plans we have for Albert Hall, and its potential to be a place where the community of Swansea can come to work, relax, and play when the restrictions of Covid-19 are long behind us.”
Nick Saunders, founder and managing director of The Depot added: “Despite starting life as a temporary pop-up back in 2014, The Depot has since established itself as a key part of Cardiff ’s alternative night-time economy, and we can’t wait to do the same in Swansea - providing a diverse and exciting events space for both locals and tourists alike.
“We’re really excited about moving into a second site – and becoming neighbours with some other fantastic local businesses in the process.”
A “boutique apart-hotel” comprising of 10 serviced apartments will look to attract tourists, as well as ensuring the long-term sustainability of the scheme and contributing to a low carbon footprint existence.
These will be available to rent for periods between one night and six months.
Academy Coffee have also been confirmed as tenants of the new scheme. Mr Baston is a co-director of the group of speciality coffee shops that originated at The Pumphouse in Barry, with several venues across south Wales in Barry, Cardiff, Penarth (and Newport under construction).
Each Academy venue has sought to ensure it has its own individual look and feel, from Victorian industrial brickwork to modern shipping containers. At the Albert Hall, the company has plans to operate an all-day venue serving coffee and light lunches during the day, transforming into a cocktail bar and lounge by night.
Council leader Rob Stewart said: “I welcome the new vision for the Albert Hall, one of Swansea’s most iconic city centre buildings.
“The council has worked with LoftCo to get to this stage and, pending planning permission, will continue to support the scheme. It can be a fantastic new venue and will be a near neighbour to our indoor arena that’s due to open this year.
“Together, they can help Swansea become a place where people want to live, work, study and spend quality spare time.”