In light of Arcadia entering administration and Debenhams facing
liquidation, , Chair of the Business, Energy and
Industrial Strategy (BEIS) Committee has written to
Alok Sharma on the Government’s plans to address the impact
of large-scale retail failure.
The correspondence asks for
detail on the Government support which will be available to staff
and whether the Government intends to introduce specific support
for the retail sector and those losing their jobs.
, Chair of the Business, Energy and
Industrial Strategy (BEIS) Committee said: “It has been
a dark week for bricks and mortar retail in the UK. While many
will point to issues relating to the management record and
business models at Arcadia and at Debenhams, there is no doubt
that Covid-19 has hit the high-street hard and, sadly, looks
likely to bring job losses and store closures to many communities
across the country. I hope the Secretary of State will come
forward with more detail on the support the Government will
provide to the retail sector.
“The Government should be doing more to bring stakeholders
together to find a solution to commercial rent debts as well as
support for small businesses in the retail supply chain. I hope
the Secretary of State will look again at setting up a Retail
Taskforce with tenants, landlords, banks, supply chain businesses
and Ministers to find solutions before more damage is caused.”
The correspondence to the Secretary of State also questions what
analysis the Government has undertaken on the impact on the
workforce of major retail business failure, including on female
workers, part-time staff, and low-pay workers, and of the wider
impact on retail and connected sectors of the collapse of
retailers such as Debenhams.
Following an evidence hearing on Tuesday 17th November
on the impact of Covid-19, with businesses, unions and
representative business groups from sectors including retail,
leisure and hospitality , Chair of the Business, Energy and Industrial Strategy
(BEIS) Committee wrote to
Alok Sharma, Secretary of State with a series of questions
around the targeting of taxpayer support (including on business
rates), on rent obligations and landlords, on consultation with
businesses in relation to curfews and local tiered lockdowns, and
on the question of access to Government support schemes.
