British Retail Consortium (BRC) has warned that the British retail sector may have to face multiple store closures if the government fails to extend a moratorium on aggressive debt enforcement.

BRC said two thirds of British retailers have been told by landlords they will be subject to legal measures to recover unpaid rent from July 1 when the moratorium ends.

Many UK retailers deemed "non-essential" had to close their stores during multiple COVID-19 lockdowns over the last 15 months, accruing total rent debt of 2.9 billion pounds ($4.1 billion), the BRC said

Around 80 per cent of tenants said some landlords have given them less than a year to pay back rent arrears. Without government intervention, the end of the moratorium could see thousands of shops close, said Helen Dickenson, CEO, BRC. She urged the government to allow the rent arrears built up during the pandemic to be ringfenced and the moratorium on repayment of these debts to be extended to the end of the year.