News
28 Jun 2013 11:05am

Four retailers line up administrators

Deloitte has been appointed to handle the administration for retailer ModelZone, which has almost 50 shops

The toy chain is one of four retailers that filed for notice to appoint administrators this week, putting 2,000 jobs at risk.

Furniture retailer Dwell has appointed Duff & Phelps as administrators, after closing its 23 stores last week, and Ernst & Young has been appointed by clothing group Internacionale, which has150 stores.

The firm had already entered administration in 2008 once before being rescued by an Indian textile company. Also going into administration this week was Ark, a northern-based fashion retailer, which has 17 stores and 400 employees

Monday was the quarterly rent payment day, which is well known for putting financial pressure on retailers. Recent research from PwC highlighted that the tax bills retail brands have to pay has soared by 65% over recent years.

In more positive news for the retail sector however, the Office for National Statistics said last week that UK retail sales had beaten expectations to rise 2.1% in May compared to the previous month.

Helen Roxburgh

 

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