Retail outlook continues to worsen
The number of retailers falling into administration in 2012 increased for the third year running, up by 6% compared with 2011, according to Deloitte.
High street woes continued throughout the last year, which resulted in 194 retailers entering administration, compared with just 183 in 2011 and 165 in 2010. However, there was a slight fall in the last three months of the year compared to the final quarter of 2011.
Lee Manning, restructuring services partner at Deloitte, said the figures were a stark reminder of the difficulties which continue to face the sector.
“Constrained household budgets and the structural challenges facing the sector mean it is certain that we will see further distress next year,” he said. “Christmas trading appears to have been reasonable, though not spectacular and not enough to prevent insolvencies in the first quarter of 2013.
Over the last year major chains such as Peacocks, La Senza, Blacks, Game, Clinton Cards, JJB Sports and Comet all entered administration. More retailers are expected to go bust this year when it becomes clear that Christmas trading and a short-lived sales boom failed to make up for another painful year.