Revamp unfair business rates, urge top stores

AROUND 50 of Britain’s biggest retailers have joined forces to urge ministers to overhaul business rates amid reports that 10,000 jobs are at risk at Debenhams.

Firms including the struggling department store, Topshop owner Arcadia, Argos and Boots are said to have launched the taskforce in response to the high Street ‘bloodbath’ which saw 93,000 jobs lost last year.

The Mail has been campaigning for a root-and-branch review of business rates and a level playing field between bricks-and-mortar retailers and online-only firms such as Amazon. Critics have blamed crippling business rates for piling further cost pressures on already struggling retailers.

The group, which also includes Costa, Iceland and Sports Direct, is yet to launch but is expected to go public in the coming months.

The latest call to save the high Street comes amid reports Debenhams is looking to shut as many as 90 of its 166 shops, threatening 10,000 jobs.

The struggling retailer suffered a setback last week when its chairman Sir Ian Cheshire was ousted in a boardroom coup led by Sports Direct tycoon Mike Ashley. At the same time, Debenhams revealed a slump in Christmas sales. A spokesman declined to comment.

Meanwhile, fashion chain New Look revealed it was preparing to hand over ownership to its lenders in an effort to slash its £1.35bn debt mountain. The company has launched a so-called debt-forequity swap that will place almost three quarters of the business in the hands of its bondholders, thought to include Carlyle, GSO, CQS, M&G Investments, Avenue Capital and Alcentra.

The deal will see New Look’s debt cut by £1bn to £350m, giving it breathing space to pay back money owed.

Alistair McGeorge, chairman of New Look, said the deal would allow it to give staff certainty over their future.