A major retailer is to close multiple stores across the UK after falling into liquidation ahead of the Chancellor’s tax raid on businesses.
MaxiDeals who are thought to be a competitor to Poundstretcher “very suddenly” stopped trading.
The managing director Paul Mathers told the Grocer, “really tough trading environment on the high street, accompanied with rising costest”.
Mathers wrote a statement, saying, “MaxiDeals was a new startup discount retail business backed by investors, where I was given the responsibility of opening its retail locations across various parts of the UK.
“We opened these stores during very challenging times with the Covid outbreak just starting, however we did manage to get to 24 stores.”
Businesses have warned Rachel Reeves that her Autumn Budget will cause many to either close, halt investment and will lay of off staff as the Chancellor is increasing the employer’s national insurance rate to 15% which will cost retailers at least £28 billion.
Theresa Lindsay, the director at Novuna, said, “The £28billion National Insurance tax bill represents a significant financial burden for UK businesses across all industries and will inevitably force many businesses to radically rethink their hiring and pricing strategies in order to remain sustainable for the long term.
“We’re already seeing the fallout across the sectors we operate in, as businesses grapple with impending cost pressures and explore competitive funding options to maintain liquidity and help them navigate the challenges.
“The added concern is the wider knock-on effect across the economy, if businesses scale back or worse still, stop trading as a result of this tax hike, we could see significant disruption across supply chains which would stall growth in the UK economy.”
