Photo by Mike Mozart/Flickr
According to an analysis that was published today, Toys R Us, the embattled retailer, could have saved business rates amounting to £17m if the government had not delayed its revaluation of rates.
Toys R Us has about 3,200 employees in the United Kingdom. However, it is assumed that the retailer could soon declare the shutdown of a quarter of its stores, resulting in the loss of hundreds of jobs.
According to an analysis that was released by Colliers International, the toy retailer could have spared millions if only the government had revaluated business rates in 2015, instead of two years later.
The head of business rating at Colliers International, John Webber, stated: “The current business rates regime has done nothing to stimulate healthy retailers and only seems to be adding to the problem. Given the uncertainty of Brexit, along with rises in the national living wage, apprenticeship levy and the fall in sterling, many retail businesses are feeling increasingly vulnerable.
“The government needs to be more supportive of retail and properly reform the system now.”
It was also revealed that Toys R Us waived more than £580m in loans to TRU (BVI) Finance 11 Ltd, a company that is located in the British Virgin Islands. The accounts of Toys R Us at Companies House reveal that its holding company in the United Kingdom generated e a loss amounting to £673m in the year ended 28 January.
In the said accounts, Toys R Us said that it waived the loan that was granted to TRU (BVI) Finance 11 Ltd “as a part of a group reorganisation.”