Debenhams warns Welsh government that 900 jobs will be lost and none of its stores will reopen after the foreclosure


Debenhams has warned the Welsh government that it will be forced to close its main stores unless a rate hike is granted.

British Chancellor Rishi Sunak previously granted a one-year tariff holiday to all retail, leisure and hospitality businesses.

Wales said it would match the commitment, but then changed the threshold.

The President of Debenhams has now issued a harsh warning to Welsh Finance Minister Rebecca Evans.

A letter from the president said: “It is deeply unfortunate that by choosing to take a different approach from that taken elsewhere in the UK, you have made it economically unsustainable for us to continue to negotiate the majority of our Welsh activities.

“You have not understood the situation, where Debenhams Retail Limited is under administration and will stop paying professional rates unless it chooses to reopen its stores in Wales.

“He won’t be able to reopen his stores unless you reverse your decision.” “

The decision on the case rates affects the biggest stories of Debenhams in Wales; Cardiff, Swansea, Newport, Wrexham and Llandudno.

The closings are said to affect approximately 900 people.

In April, Debenhams confirmed his official entry into the administration.

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This is the second time that Debenhams, which employs approximately 22,000 people, has joined the administration in the past 12 months.

The main street staple has 10 stores in Wales.

Debenhams’ 142 stores in the UK remain closed in accordance with government directives and the company has said it will work to “reopen and swap as many stores as possible” when the restrictions are lifted.

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A Welsh government spokesperson said: “We have decided to limit the reduction in non-domestic rates (NDR) for the hotel, retail and leisure sector, announced to exclude the small proportion of properties with a assessed value of more than £ 500,000.

“It affects less than 200 properties across Wales, but frees up more than £ 100 million for our Economic Resilience Fund – enough to support more than 2,000 businesses with grants of £ 50,000.” The Economic Resilience Fund will support businesses of all sizes, but especially micro, small and medium, in response to the pandemic and received 6,000 requests within the first 24 hours of opening. ”


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