Independent retailers could face a “tsunami of closures” as the pandemic pushes debt levels up five-fold.
About 150,000 small businesses have racked up £2.3bn in debt since the first lockdowns began last March, up from £500m before the pandemic.
But while this takes into account government-backed loans, it does not include rent debt, meaning the true figure could be far higher.
The report by Bill Grimsey, the former boss of Wickes and Iceland, said that at least a third of small businesses are at risk of defaulting after racking up unsustainable levels of debt. Grimsey has called on the government to write off loans.
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