© Reuters. FILE PHOTO: People walk past a closed store following the coronavirus disease (COVID-19) outbreak in Chester, Britain August 10, 2020. REUTERS / Phil Noble
LONDON (Reuters) – Britain’s retail sector will suffer a “tsunami of closures” if the government does not extend a moratorium on aggressive debt collection, industry lobby group British said on Sunday. Retail Consortium (BRC).
Citing survey data, he said two-thirds of UK retailers had been told by landlords that they would be subject to legal action to recover unpaid rent from July 1, when the moratorium would end .
Many UK retailers deemed ‘non-essential’ have had to close their stores during several COVID-19 lockdowns over the past 15 months, racking up a total rent debt of 2.9 billion pounds ($ 4.1 billion), the BRC said.
The pandemic has hammered the industry and industry data shows that one in seven stores is already empty.
The BRC survey found that 80% of renters said some landlords gave them less than a year to pay off rent arrears.
Without action, ending the moratorium could see thousands of stores close, said Helen Dickinson, BRC chief executive.
She called on the British government to allow the cantonment of rent arrears accumulated during the pandemic and to extend the moratorium on the repayment of these debts until the end of the year.
“With this in place, all parties can work on a long-term sustainable solution, one that shares the pain of the pandemic more equitably between landlords and tenants,” she said.
“Without action, it will be our city centers, our main streets and our shopping centers that will suffer the consequences, slowing the economic recovery in the broad sense.”
(1 USD = 0.7049 pounds)
Fusion Media or anyone involved with Fusion Media will not accept any responsibility for loss or damage resulting from reliance on any information, including data, quotes, graphics and buy / sell signals contained in this website. Be fully informed of the risks and costs associated with trading in the financial markets, it is one of the riskiest forms of investing possible.