retail
Morrisons has agreed a deal with creditors to buy convenience store chain McColl’s out of administration, saving around 1,100 stores. The Issa brothers also made a bid for the stores but were unsuccessful. Morrisons has promised to honour McColl’s retirement fund as part of the deal, which was welcomed by representatives from the pension scheme. Rob Lewis, joint administrator at PwC which oversaw the sale, said: “Especially during the current economic climate, the completion of this transaction provides much-needed certainty to McColl’s 16,000 staff after a period of understandable concern following the group’s challenges over the past months. All in all, a really positive outcome.”
Retailers and trade organisations have launched a campaign for a reduction in business rates. Retailers such as Sainsbury’s, Greggs, Waterstones and the Co-op, along with trade bodies such as Usdaw and the British Independent Retail Association, have written to the Chancellor under their ‘Cut the Shops Tax’ campaign. At the moment, Rishi Sunak is consulting on an online sales tax, which the alliance says could be used to fund reductions in business rates. Research by WPI Strategy found that the burden of business rates is “highest in the places most in need of ‘levelling up’, which are also the places with the highest retail vacancy rates.”
Leisure
The Government is set to make pavement licences permanent under the Levelling Up and Regeneration Bill, a move welcomed by the hospitality industry. UKHospitality chief executive Kate Nicholls said in March: “Pavement licences have been a really positive success story, and in many cases have enabled businesses to remain open… by helping local economies recover— and recover faster— this will undoubtedly contribute to the long-term levelling up of the regions.” The new rules are to be announced at today’s State Opening of Parliament.
The number of restaurant businesses becoming insolvent has increased over the past 12 months, according to accountancy firm Price Bailey. In the 12 months to 31 March 2022, more than 1,300 restaurants went out of business, a 4% rise on the previous 12 months. Q1 2022 (378) saw the highest number of restaurant insolvencies since Q4 2019 (386). Price Bailey says that the sector faces a ‘perfect storm’, with a range of factors including the end of COVID-19 support packages and rising inflation having an impact.
Property
Shaftesbury and Capco have confirmed that they are in talks over a merger that would create a combined portfolio of 2.9million sq ft of lettable space across Soho, Covent Garden, Carnaby Street and Chinatown. The £3.5billion merger would result in Capco controlling 47% of the combined company and Shaftesbury the other 53%.
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