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| Debenhams threatens to keep Welsh stores shut | Debenhams threatens to keep Welsh stores shut |
| (about 1 hour later) | |
| Debenhams has warned the Welsh finance minister it will be forced to shut its major shops in Wales unless the government reverses a decision on business rates relief. | Debenhams has warned the Welsh finance minister it will be forced to shut its major shops in Wales unless the government reverses a decision on business rates relief. |
| Chancellor Rishi Sunak has granted a rates holiday to all retail, leisure and hospitality firms for a year. | Chancellor Rishi Sunak has granted a rates holiday to all retail, leisure and hospitality firms for a year. |
| Wales initially said it would match these plans but then changed the threshold for those eligible. | Wales initially said it would match these plans but then changed the threshold for those eligible. |
| It said the change means business rates will be used for grants to small firms. | |
| In a letter seen by the BBC, Debenhams' chairman writes that the move threatens the viability of its biggest stores in Wales in Cardiff, Swansea, Newport, Wrexham and Llandudno. | In a letter seen by the BBC, Debenhams' chairman writes that the move threatens the viability of its biggest stores in Wales in Cardiff, Swansea, Newport, Wrexham and Llandudno. |
| Wales decided not to extend relief to properties with a rateable value of £500,000 and above. | Wales decided not to extend relief to properties with a rateable value of £500,000 and above. |
| Debenhams' chairman Mark Gifford tells Welsh Finance Minister Rebecca Evans: "It is deeply regrettable that, by electing to take a different approach to that taken elsewhere in the UK, you have made it economically unviable for us to continue trading the majority of our Welsh business. | Debenhams' chairman Mark Gifford tells Welsh Finance Minister Rebecca Evans: "It is deeply regrettable that, by electing to take a different approach to that taken elsewhere in the UK, you have made it economically unviable for us to continue trading the majority of our Welsh business. |
| "You have failed to understand the situation, where Debenhams Retail Limited is in administration and will cease to pay business rates unless it chooses to reopen its stores in Wales. | "You have failed to understand the situation, where Debenhams Retail Limited is in administration and will cease to pay business rates unless it chooses to reopen its stores in Wales. |
| "It will be unable to reopen its stores unless you reverse your decision." | "It will be unable to reopen its stores unless you reverse your decision." |
| A Welsh Government spokesperson said: "We decided to limit the Non-Domestic Rates (NDR) Relief for the hospitality, retail and leisure sector announced to exclude the small proportion of properties with a rateable value of over £500,000. | |
| "This affects fewer than 200 properties across Wales but releases more than £100 million towards our Economic Resilience Fund - enough to support more than 2,000 businesses with grants of £50,000. | |
| According to real estate services firm Altus Group, Debenhams has business rates liabilities in Wales of £2.35m for the current financial year. | According to real estate services firm Altus Group, Debenhams has business rates liabilities in Wales of £2.35m for the current financial year. |
| The biggest bill is for its Cardiff store at more than £1.1m. | The biggest bill is for its Cardiff store at more than £1.1m. |
| Meanwhile, it has emerged that four more Debenhams stores will not reopen post-lockdown, after the business failed to agree deals with landlords. | Meanwhile, it has emerged that four more Debenhams stores will not reopen post-lockdown, after the business failed to agree deals with landlords. |
| The shops are in Southampton, Swindon, Kidderminster and Borehamwood. They are in addition to seven outlets Debenhams already said will remain closed. | The shops are in Southampton, Swindon, Kidderminster and Borehamwood. They are in addition to seven outlets Debenhams already said will remain closed. |