Ashley says help for shops ‘near worthless’
MIKE Ashley’s high street empire says it could be forced to close stores due to the cap on business rates relief announced in the Budget.
A statement by Frasers Group yesterday branded Chancellor Rishi Sunak’s aid for shops “near worthless” for large retailers.
It warned that a £2million cap on the level of support has made it “nearly impossible” for it to take over former Debenhams branches, as planned.
The firm’s attack centres on the announced extension of a business rates holiday in the Budget.
The measure, put in place at the start of the pandemic, was supposed to relieve pressure on retailers and hospitality companies hit by a slump in trade.
But it has also benefited firms that have been allowed to stay open.
On Wednesday the Chancellor announced that the 100 per cent relief would be extended to July.
From then until March 2022, retailers can get a 66 per cent discount on their rates bill up to £2million.
Frasers, which owns the Sports Direct and House of Fraser chains, had been considering taking over branches of collapsed department store chain Debenhams.
But it said yesterday: “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.” Property experts Altus Group estimate that Frasers will have benefitted from £91.2million of business rate relief on its 1,000-store estate in the 12 months to the end of this March.
Danni Hewson, financial analyst at City firm AJ Bell, said: “It’s understandable that Frasers has taken another swipe at business rates. Mike Ashley’s retail empire has a lot of skin in the game.”