REI blames upward-only rent reviews for Peats closure

The country's largest retail industry group Retail Excellence Ireland (REI) has today blamed the practice of upward-only rent reviews for the closure of Peats World of Electronics.

"It is always extremely sad to see a well-established indigenous Irish retailer like Peats closing," said David Fitzsimons, chief executive, Retail Excellence Ireland.

"This is particularly so as it was a business that employed 75 people and was managed by three generations of the Peat family.

"It is clear that the poisonous legacy of the upward only rent reviews had a definite part to play in Peats’ closure and job losses. The stores would have been in a much stronger position to continue had they been able to benefit from a market rent, rather than an artificially high rate.

"Consumer electronics is one of the sectors of the Irish retail industry that is under particular pressure. Sales of electrical goods have fallen by over 40% in recent years.

"While the Government did not act on upward only rent reviews, the Action Plan for Jobs promised to act on commercial rates and other business costs affecting retailers.

"I urge the Government to take prompt action to ensure that local authority rates are moved to new levels that reflect the average 30% reduction in retail sales levels over the last four years."