Fifteen Major Retailers Have Gone into Administration or Announced CVAs Since April 2017 Business Rates Revaluation says Colliers

Fifteen major retailers or restaurant groups have gone into CVA or administration in the twelve months since the April 2017 Business Rates Revaluation, according to Colliers International, the global commercial real estate agency and consultancy, with ten of them since the beginning of this year- in the last three and a half months alone.  And, according to John Webber Head of Business Rates, there seems to be little reprieve on the horizon going forward. “These figures are as bad, if not worse than the crash of 2008/9 when 16 companies went into administration- 12 in 2008 and 4 in 2009- and we are only in April now.”

Colliers has calculated that already around 12,000 jobs have been lost or are on the line. “We wonder how many more retailers are going to get into trouble or people lose their jobs before someone decides to tackle the problem properly.”

Colliers has calculated the rating bills of each of the household names* that have gone into administration or announced CVAs since the 2017 Revaluation and the types of bills they are either facing or would be facing in 2018/9 if still trading. The figures show that together they saw a rates bill of over £152 million last year and would be hit with an even higher bill this year, with the bills starting to hit the mat now. Some of this the Chancellor will now be missing from his rates tax take this year. The table below includes Conviviality’s Bargain Booze and Wine Rack stores, which were part of its retail chain which was bought  in a pre-pack administration and Carpetright, which on Thursday announced it was closing 92 stores and axing 300 jobs.

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John Webber

Head of Rating

Birmingham

I have over 30 years’ experience in the rating industry and lead a 90 plus rating team at Colliers International.  When I took over responsibility for the team in 2005, it consisted of only a dozen people and has now grown into one of the leading rating advisory teams in the country.  I am a member of Colliers International Management Executive as well as sitting on the company’s promotion panel. 

I am regularly called upon by the national media to give my views on a range of business rates issues and I am vocal commentator on the 2017 Revaluation.

I started my career in the Valuation Office Agency in Kidderminster.  I joined Gerald Eve in 2000 where I spent 10 years before moving to Gooch Webster (now Colliers International). I sit on the National Retail Panel of Rating Surveyors Association which provides guidance on how the RSA town committees work with the VOA and valuation matters.  John sits on the RICS Rating Diploma Committee having passed the prestigious qualification in 2014.

Philip Harrison and I founded 'Accurates' in 2007, the Collier's Compliance and Audit team, which although forms an integral part of the Rating Team is now a leading brand in its own right.

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