Retailers falling into administration up 6%

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The number of retailers falling into administration jumped 6% year-on-year in 2012, according to Deloitte

Over the year, 194 retailers entered administration compared with 183 in 2011 and 165 in 2010.

Overall, the level of administrations across all sectors was down by 9% through the year, at 1,833 compared with 2,010 in 2011.

Lee Manning, restructuring services partner at Deloitte, said, “These figures are a stark reminder of the difficulties which continue to face the high street. Constrained household budgets and the structural challenges facing the sector mean it is certain that we will see further distress next year.

“Christmas trading appears to have been reasonable, though not spectacular and not enough to prevent insolvencies in the first quarter of 2013.”

High profile retailers filing for bankruptcy over the past 12 months include Peacocks, La Senza, Blacks, Game, Clinton Cards, JJB Sports and Comet.

Manning added, “Strong consumer spending growth is not likely to return any time soon which makes it essential that retailers address the fundamental issues affecting the industry - store portfolios and multichannel.

“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.”

 

Helen Roxburgh

 

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