Published at 11:28, Monday, 27 February 2012

Edinburgh Woollen Mill’s purchase of collapsed clothing retailer Peacocks raises hopes for local workers – and worrying signs of a business blockage.

While those laid off from Carlisle and Workington stores have been given assurances by new owner Philip Day that he’ll fight for their jobs, there’s a familiar ring to his caveat.

Not for the first time is a businessman highlighting the issue of high town centre rents as a significant obstacle to growth and employment.

The Carlisle and Workington stores are among 75 loss-making shops now at the centre of crucial rescue talks.

Edinburgh Woollen Mill is now in discussion with landlords, trying to renegotiate prohibitively expensive leases and reopen some of the unprofitable outlets immediately closed by administrators when the takeover went through last week.

According to the company, if reduced rents can be secured, local branches can be reopened and jobs reinstated.

Mr Day’s record of turning around troubled businesses is well known. He is one of our largest regional employers.

But, as has been seen in Carlisle over recent months, no matter how strong the will to succeed and irrespective of sales volumes, eye-watering rents are driving retailers out of high street properties.

The result is too often a shift to out of town developments, empty central premises and a serious hindrance to climb-back from recession.

Published by http://www.newsandstar.co.uk