Retail insolvencies surge

The number of retailers going out of business in the second quarter jumped up by more than 10%, according to recent figures from PwC.

Retail analysts said the bad weather and dampened consumer confidence were contributing factors to the rise in bankruptcies, with Clinton Cards and Game among victims of the high street cull.

However, the corporate insolvency statistics show an overall reduction (3,927 companies) between April and June - down 3% on the same quarter (4,055 companies) in 2011.

This overall reduction in insolvencies is expected to fuel hopes that the ‘Olympic effect’ would reverse the economic rot in the third quarter, after the ONS delivered a shock announcement last week that GDP declined by 0.7% between April and June.

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robertlovell's picture

CBI retail figures add to economic gloom

robertlovell | | Permalink

The CBI's monthly distributive trades survey also found retail sales to have risen at a much weaker rate than retailers had hoped in July.

The survey's net balance - the number of retailers seeing a higher volume of sales compared to a year ago minus those seeing a decline - fell from a one-and-a-half year high of +42% in June to +11%, its lowest since April.

Visit the Economy discussion group for more data and analysis.