AGENTS whose business has been wrecked by the foot and mouth
crisis will not have to meet ABTA’s strict membership rules this year.
In a move that could save retailers from ruin, Newman Street
has agreed to turn a blind eye if agents’ cash flow fails to satisfy the
association’s requirements. Many retailers in rural areas are currently
struggling to meet the criteria after their business virtually dried up. Some
agents have reported a fall in sales of up to 80%.
ABTA chief executive Ian Reynolds stressed the relaxation
will only apply if retailers can prove their business has been damaged by the
foot and mouth crisis.
It will also only apply to membership renewals, not those
joining for the first time.
Reynolds said: “We will look sympathetically on agents in
rural communities who have experienced a downturn in bookings because of the
epidemic,” he said.
“We’ve had reports of members losing more than half their
business, particularly those in Devon, Cornwall and Cumbria, and those who
would struggle to meet the criteria.
“There is a likelihood some will have severe problems and we
will take this into account if they breach certain financial regulations.”
Under the current financial criteria, agents must have net
assets of £50,000 and working capital of £15,000.
It is unclear how lenient ABTA will be but Reynolds said
each case would be taken on its merits.