Base Menswear is the latest small retailer to go into administration because of high business rates. Base Retail has appointed administrators for its business Base Menswear and has had to close four stores across London, making ten staff redundant.
The menswear retailer has suffered after poor trading over Christmas, ‘obscene’ business rates and a dwindling consumer market. Managing Director, Marc Granditer, felt there was no other option but to call in administrators and close four out of its nine stores.
“The men’s business has been challenging with a capital ‘C’ for a number of years. We have seen our market diminish to a point where it’s become unsustainable.’ Marc goes on to say, “Rents are always difficult, but generally landlords are receptive. The real problem is the rates – the absurd situation in some of our stores where we were paying twice as much rates as rent. It’s obscene.”
Portland was appointed administrators yesterday to help restructure the business and organise the debt, working out what’s left for creditors.
Fortunately, for Base Retail, five menswear stores are still trading (Basildon, Bluewater, Romford, Stratford and White City) and Base Childrenswear remains unaffected. However, business rates have been a big problem for many retailers for a while now and unless there is a business rates reform, many more retailers in the future will suffer which could include Base Retail.