Retail administrations soar says Deloitte report
The number of retail companies going into administration increased by 30% in the first quarter of the year, according to a report by business advisory firm Deloitte.
There were 60 firms entering administration between January and March, up from 46 in the same period last year.
This was the highest number for any quarter in two years.
The figures do not include Oddbins, which went into administration on April 4.
Lee Manning, Deloitte reorganisation services partner and Oddbins administrator, said: “The sector is heavily reliant on buoyant consumer spending and the increase in VAT and the government’s austerity measures are undoubtedly hitting the sector hard.
“In particular, smaller retailers are likely to be feeling the pinch more so than ever, as they often have little grounds to negotiate flexible credit terms with suppliers and may find it difficult to raise funding.”