LONDON (Reuters) – Britain’s retail sector will endure a “tsunami of closures” if the federal government doesn’t lengthen a moratorium on aggressive debt enforcement, trade foyer group the British Retail Consortium (BRC), mentioned on Sunday.
Citing survey information it mentioned two thirds of British retailers have been instructed by landlords they are going to be topic to authorized measures to recuperate unpaid lease from July 1 when the moratorium ends.
Many UK retailers deemed “non important” needed to shut their shops throughout a number of COVID-19 lockdowns over the past 15 months, accruing complete lease debt of two.9 billion kilos ($4.1 billion), the BRC mentioned.
The pandemic has hammered the sector and trade information exhibits one in seven retailers already lie empty.
The BRC’s survey discovered 80% of tenants mentioned some landlords have given them lower than a yr to pay again lease arrears.
With out motion, the top of the moratorium might see 1000’s of outlets shut, mentioned BRC chief government Helen Dickinson.
She known as on the UK authorities to permit the lease arrears constructed up in the course of the pandemic to be ringfenced and the moratorium on compensation of those money owed to be prolonged to the top of the yr.
“With this in place, all events can work on a sustainable long-term resolution, one which shares the ache wrought by the pandemic extra equally between landlords and tenants,” she mentioned.
“With out motion, will probably be our metropolis centres, our excessive streets and our procuring centres that undergo the implications, holding again the broader financial restoration.”
(Reporting by James Davey; Enhancing by Toby Chopra)
Copyright 2021 Thomson Reuters.