Department store chain Debenhams is gearing up for a battle over a proposed business rates hike on one of its stores that it says could decide the future of the whole group.
The retailer has appealed to a tribunal against the 12% hike in its business rates bill to ÂŁ1.1m on one of its stores in Swansea, Wales. As a result, it said it was âkicking off a nationwide fight in local tribunals for its business rates liability to be rebased to reflect realityâ.
Given the problems battering the UK high street pre-coronavirus, and the catastrophic effects on trading from the lockdown and continued slow footfall growth, Debenhams said a failure to reverse âunsustainableâ rates increases put more of its stores and staffâs jobs at risk.
âUnless more realistic assessments are agreed, Debenhams is likely to have to close more stores, with the result that thousands more workers will lose their jobs,â it said. âSince lockdown, the network has already shrunk from 142 to 124 stores.â
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