Frasers Group, the UK-based fashion retailer, is not happy about the recently announced business rates relief extension package.
The Group has, reportedly, called the package ‘near worthless’ for big retailers and added that such a package would force it to hold back its plans of buying former Debenhams stores.
Additionally, Frasers may even be compelled to review its own estate to find out stores that will become unprofitable owing to unrealistic business rates.
The £2 million rates cap on businesses, effective from July 2021 to March 2022, was announced last week during the Budget presentation.
The Group said that companies should pay fair amount of rates that are in line with realistic rateable values.
While presenting the package, Chancellor Rishi Sunak had said that extension will be followed by a period of 6 months wherein rates will be discounted to 1/3 of normal charge – up to a maximum of £2 for closed firms.
In January, Frasers Group had bought the fashion retailer Psyche following a buyout deal of undisclosed amount.
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