Jobs massacre fears as extra retailers go bust: Retailers sound the alarm  over Labour’s tax plans

The crisis on the High Street deepened as a slew of household names sounded the alarm over jobs amid fury over Labour’s tax plans.

As the Chancellor faces a mounting backlash over business rates reforms, The Original Factory Shop yesterday became the latest retailer to crash into administration, leaving around 1,180 staff anxious about their future.

Administrators at Interpath said the company, which has 137 stores, has been hit by ‘challenging trading conditions, driven by high cost inflation, fragile consumer confidence and Government policies which have led to significant increases in employment costs’.

It came just two days after Claire’s Accessories, which like The Original Factory Shop is owned by Modella Capital, fell into administration, putting over 1,000 jobs at risk.

Fears of job losses also loomed for LK Bennett’s 280 staff as the fashion retailer’s brand was bought by investment firm Gordon Brothers.

The new owner said it would shift the retailer, whose designs have been favoured by the Princess of Wales, to an ‘asset-light model’ – suggesting redundancies.

Gamble: As the Chancellor (pictured) faces a backlash over rates reforms, The Original Factory Shop became the latest retailer to crash into administration

And fast-food chain Tortilla warned it was considering price increases due to policies announced at the last Budget.

In another warning, the boss of Travelodge said the Government ‘is neglecting the broader hospitality sector and undermining its own goals for growth and job creation’.

Jo Boydell, who runs the hotel firm, warned its business rates bill will rise from £38m last year to £50million this year.

Metro Bank also told 100 employees their jobs were at risk yesterday as it looks to cut costs. The dismal updates follow shop closures at Poundland, River Island and Russell & Bromley in recent weeks.

Retailers face rises in wages and business rates in April, having already been hit with higher taxes.

Helen Dickinson, chief executive at the British Retail Consortium, said: ‘The situation could become worse if Government policies add significantly to this burden in 2026.’

Rachel Reeves this week announced help for pubs – but not for the rest of the hospitality industry.

Trade body UKHospitality said that the average restaurant faced a 54 per cent rise in business rates over the next three years.

Steve Perez, the founder of Global Brands, the drinks company behind Hooch and VK, warned: ‘Unfortunately, we are going to see more restaurants, cafes and wonderful hotels close.’