AN URGENT plea has gone into the Welsh Government to reverse a financial decision which it is feared will result in the closure of Newport’s Debenhams store.

In a strongly-worded letter to the Welsh minister for finance Rebecca Evans, Newport Now Business Improvement District manager Kevin Ward has said if the store closes it “would deliver an economic blow from which our city may never recover”.

And the Argus is backing this campaign to overturn a decision which the Welsh Government made after it had announced support for businesses struggling to cope because of the coronavirus pandemic.

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The scheme to give business in the retail, hospitality and leisure sector a 12-month holiday from their Non-Domestic Rates was altered to introduce a cap which effectively excludes businesses like Debenhams from the rate relief scheme.

At present, properties with a rateable value of more than £500,000 are excluded from the scheme by the cap which is not in place over the border in England.

Chairman of Debenhams Mark Gifford wrote to Ms Evans last month to warn that his company will not be able to reopen their five major Welsh stores if this decision is not reversed.

Debenhams is the flagship store of the £117-million Friars Walk shopping centre.

Opening in November 2015 – there are currently around 120 staff employed at the store.

In the letter the BID said that the loss of Debenhams would be “disastrous” for the city centre.

Mr Ward said Debenhams was the anchor store for the Friars Walk development that kick-started the regeneration of the city centre when it opened in November 2015.

South Wales Argus:

Kevin Ward

“To lose Debenhams less than five years later would deliver an economic blow – on top of that already received from the coronavirus crisis – from which our city centre might not recover,” he said.

“There is, of course, far more to Newport city centre than Debenhams, but the risk of losing the anchor store for the Friars Walk development which kick-started the regeneration of our city centre when it opened in November 2015 is too great.

“While we appreciate the huge demands on Welsh Government finances during the current crisis, the decision to place a ceiling on non-domestic rates relief for the retail, hospitality and leisure sector is not helpful – particularly when this does not apply in the rest of the UK.

“This could well be the straw that breaks the camel’s back for Debenhams in Newport and Wales as a whole.

“We understand there is a meeting between Welsh Government and Debenhams this week and we hope common sense will prevail.

“Newport Now BID urges you to reverse the decision to place a ceiling on NDR relief to protect jobs and businesses in our city.”

Newport’s Members of the Senedd (MSs) have echoed the sentiment of the Newport Now BID and expressed their desire to ensure that businesses such as Debenhams could be retained in the city.

John Griffiths, MS for Newport East, said: “The uncertainty over the future of Debenhams is a very concerning one.

South Wales Argus:

John Griffiths

“Without it a lot of the smaller businesses will be rightly worried about the potential loss in footfall, which having a store of that size brings to the city.

“The city council and other stakeholders, including myself, lobbied hard to bring Debenhams to Newport. We cannot afford to lose it because of the knock-on impact it will have on jobs and the local economy.

“I have taken up these matters with Welsh Government and I will continue to press the urgency of the situation.”

Jayne Bryant, MS for Newport West, said that failure to keep stores such as Debenhams in the city would be a “hammer blow” to the city’s recent regeneration.

South Wales Argus:

Jayne Bryant

“There is no doubt whatsoever these are difficult times for businesses and there are tough choices ahead,” she said.

“I have written to the first minister to look at what help could be given to encourage them to remain at the heart of our city.

“If Debenhams were to leave it would not just leave a physical gap in Friars Walk, but it would be a hammer blow to all that had been achieved over the last few years.

Both Debenhams and Friars Walk said that they will not be commenting further on the matter.

The Welsh Government has not changed its stance at the moment. A spokeswoman said: “We decided to limit the non-domestic rates 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.

“The economic resilience fund will support businesses of all sizes, but especially micro, small and medium-sized, in responding to the pandemic and received 6,000 applications within the first 24 hours of opening.

“We are also delivering a £1.7-billion support package to provide businesses in Wales with certainty and stability during these challenging times.

“We will continue to consider how to best target our support where it will have the greatest impact in sustaining jobs and the longer-term viability of our economy.”

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A turbulent few years for high street stalwart Debenhams

RECENT years have seen turbulent times for Debenhams which has seen its fortunes affected by the rise of on-line shopping.

THE Debenhams store in Newport’s Friars Walk opened in November 12, 2015 – as the flagship store in the long-awaited Friars Walk shopping centre.

On April 26, 2019, news broke that the firm had plans for up to 22 stores to close, putting 1,200 jobs at risk. The Newport Friars Walk store was not among them.

The retailer, with hundreds of stores across 22 countries, was placed into administration earlier that month, with its lenders seizing control.

Less than a year later, the firm was again on the brink of administration.

With 142 stores closed and the majority of the 22,000 staff on furlough, the current owners were looking to push the business into administration then buy it back debt-free.

Then, on April 9, 2020, Debenhams confirmed it had formally entered administration.

The firm appointed administrators from the FRP Advisory to oversee the process.

Debenhams' 142 UK stores remain closed in line with Government guidance because of the coronavirus pandemic and the company said it would work to "re-open and trade as many stores as possible" when restrictions are lifted.

However, it said its Irish business, which runs 11 stores with around 1,400 staff, would cease trading as part of the move.

On April 17, 2020, Debenhams confirmed it will close seven stores, with the loss of 422 jobs, after sliding into administration the previous week.

The Newport branch was again not among them.

The department store firm said it had agreed terms with landlords to continue trading at 120 of its 142 UK stores.

Talks remained ongoing to save the remaining stores.