By Rob Starr, Content Manager, Big4.com
According to research from Deloitte, the business advisory firm, there were 194 retail insolvencies in 2011, and that’s up 6% on 2011.
Lee Manning is the restructuring services partner at Deloitte and he noted that tightened household budgets and structural challenges mean certain further distress this year. He also noted that while Christmas trading appears to have been reasonable, it was not enough to prevent insolvencies in the first quarter of 2013.
“It is also notable that high profile, nationwide chains continue to be among the casualties despite the shake-up seen in the sector since 2008. This year alone we have seen Peacocks, La Senza, Blacks, Game, Clinton Cards, JJB Sports and Comet enter administration,” Manning said.
“There will always be a need for physical retail space but at present, too many retailers have too many stores and 2013 is likely to be marked by further closure programmes, both within and outside of formal insolvency processes.”