Retail administrations rise by 15 per cent
Monday 09 April 2012
Shoppers abandoning high street stores for internet rivals helped trigger a 15 per cent rise in retail administrations in the first quarter of 2012, a report revealed today.
Accountancy firm Deloitte said a total of 69 retailers collapsed, up from 60 in the same period the previous year, as the squeeze on consumer spending and the growing popularity of online retailers took their toll.
Fashion chain Peacocks, video games retailer Game Group, outdoor specialist Blacks Leisure, gift seller Past Times and lingerie firm La Senza all threw in the towel in the period, between them accounting for nearly 10,000 job losses.
The collapse of such big names meant the number of redundancies was likely to have been far higher than a year ago, the report added.
Lee Manning, a restructuring services partner at Deloitte, said: "The first quarter of 2012 is particularly significant given the high-profile nature of the companies we have seen enter administration."
The number of administrations was 64% higher than in the final quarter of 2011, but there is normally a rise in the first three months of the year when trading slows down after the Christmas peak and retailers struggle to pay their quarterly rent bill.
Retailers such as Game and Peacocks were bought out of administration but have seen large chunks of their store estate closed.
But Deloitte said many retailers across the UK still have too many stores as shoppers increasingly look for cheaper deals online.
It has suggested in a recent report that chains may need to reduce store numbers by 40%, which is likely to cause further pain for the UK's beleaguered high streets.
Mr Manning added: "Whilst the quarterly rent day often sets the timing for the insolvency, a significant trigger in a number of recent administrations is that many retailers have too many marginal stores.
"A fast-changing retail environment will require certain businesses to reassess their store portfolios, not as a matter of choice, but in order to survive."
- 1 Florida man sentenced to two-and-a-half years for having sex on the beach in front of a child
- 2 Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
- 4 World learns of app that shows you who unfriended you on Facebook, app promptly crashes
- 5 Chris Moyles reportedly set to make radio comeback with new breakfast show on XFM
Florida man sentenced to two-and-a-half years for having sex on the beach in front of a child
Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
Man who was struck and killed by lightning in Brecon Beacons 'was carrying a selfie stick'
Greece debt crisis as it happened: EU chiefs at loggerheads hours before Alexis Tsipras’s last ditch deal proposals
Bakery sends 'horrific' version of Frozen-themed birthday cake to unsuspecting customer
More Britons believe that multiculturalism makes the country worse - not better, says poll
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Sickness and disability benefits could be reduced by £30 a week as part of £12bn welfare cuts
Greece debt crisis: Angela Merkel and Francois Hollande issue Athens with 24-hour ultimatum to avoid crashing out of the euro
Greece crisis: Referendum exposes a gaping hole at the heart of the European Union – its lack of genuine legitimacy
iJobs Money & Business
£40000 - £95000 per annum: Recruitment Genius: This is an exciting opportunity...
competitive: SThree: Are you passionate about sales?Do you have a keen interes...
£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...