66% of UK. retail companies have a pre-existing mortgage, in accordance with new figures launched by bill finance agency MarketFinance.
In the meantime, 35% are on the hook for between £50,000 and £100,000.
The information comes as retail companies all through the UK. have handled their first week of retailer closures, in accordance with government-mandated quarantine measures.
The report additionally discovered that over half of enterprise house owners within the retail sector (52%) would contemplate taking out one other mortgage to shore p their enterprise, with 33% prepared to hunt out a mortgage between £50,000 and £100,000.
The analysis comes after Rishi Sunak, Chancellor of the Exchequer, final week outlined large-scale measures to assist small and medium companies, together with as much as £330bn allotted for state-backed loans to companies and people.
Nonetheless, in accordance with MarketFinance, 29% of companies should not contemplating taking one other mortgage, as they don’t imagine they might have the ability to service the debt even after a 12-month interest-free interval.
The overwhelming majority of survey respondents (82%), which included each e-commerce native and predominantly bodily retail chains, reported a lower in income as a result of quarantine measures, with 72% aspiring to cancel or defer spending on new hires and advertising and marketing.
The quarantine measures have already taken a bit out of retail earnings, with a number of retail chains contemplating halting operations completely, past simply their bodily shops.
This week, Arcadia Group grew to become the primary high-street casualty because it introduced that it might halt on-line gross sales for its manufacturers and prolong cost phrases for its suppliers.
Extra: E-Commerce Spherical-Up – UK. Retailers Act To Shore Up Income Amid Quarantine