// Debenhams set to appeal a 12% business rates increase to £1.1 million at its Swansea store
// The date of the Swansea rates tribunal remains uncertain but expected to take place in October
Debenhams is set to appeal to a local tribunal against a 12 per cent increase in the rates bill of its Swansea store.
The department store chain is fighting to save jobs and outlets as the south Wales store witnesses a 12% increase to £1.1 million.
The date of the Swansea rates tribunal remains uncertain but is expected to take place in October.
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- Further jobs at risk as Debenhams owners plan liquidation
Debenhams said it is launching local tribunals for business rates to reflect current trading conditions.
“The Swansea hearing is a vital test case, with serious implications for jobs, both locally and across the UK,” A Debenhams spokesperson said.
“The outcome will go a long way to defining the future of every one of our stores. Currently, we have a completely unsustainable situation where rents are going down, but our rates bill is going up.
“We understand the pressures on the Treasury but, unless common sense prevails, the end result of rates hikes will be further store closures and more job losses.
“We are fighting hard to save every store – and every job – we can and the outcome of the Swansea tribunal will go a long way to determining the ultimate size of the business.”
The department store chain fell into administration back in April for the second time in a year.
It is still facing a total UK rates bill of about £60 million once the present rates holiday is lifted.
The company said the nationwide fight in local tribunals for its business rates liability to be rebased will reflect reality.
The chain is currently owned by a group of hedge funds, which took control of the retailer in a restructuring that removed the company from the stock market and wiped out shareholders – including Mike Ashley’s Frasers Group.
In mid-August, the owners of Debenhams drew up plans for its liquidation, which could result in mass job cuts amid the Covid-19 pandemic.
Restructuring firm Hilco Capital was drafted in to work on contingency plans for the possible liquidation.
Hilco’s “contingency planning” will aim to secure the future of the 242-year-old chain before the pre-Christmas trading period.
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