Boxpark founder Roger Wade warns retail and hospitality sectors could collapse

Boxpark has reportedly warned that 50% of the retail sector is at risk of collapse.

The retail park’s founder Roger Wade reportedly said if government, landlords and tenants do not agree on the rent crisis, nearly 50% of retail and hospitality operators are at the risk of collapse.

He stressed for urgent measures, including overhauling business rates promoting turnover rents, and highlighted that by the end of June, there will be up to six months outstanding rent.

He called on landlords and tenants to unite and work together and that "We’ve got to realise we’re all in this boat together and unless we all swim together, we will all sink together.”

According to Wade, if landlords reduced rent by a third and the government gives a third towards a grant and operators took responsibility for a third, this could potentially help a great deal of the retail sector.

Wade, stressed that for operators to survive, three things need to be implemented: the social distancing rule needed to be reduced from two-metres to one-metre; pubs, restaurants, cafes and hotels needed to reopen on July 4; and tenants needed to take a more holistic approach to solving their rent issues with landlords.

He added he wanted to see the three-month moratorium on commercial landlord sanctions against tenants for non-payment.

Furthermore, Wade questioned the potential affects of the government’s new £50 million Reopening High Streets Safely Fund.

He highlighted it is now a question of survival, and not growth for many businesses.

Wade Said: “If we want to create ghost towns up and down our country, then, you know what, do nothing."