Press releases

Retail sector boost as administrations fall 35% during 2014

7 January 2015

  • 119 retailers went into administration during 2014, down 35% on 2013
  • Total administrations across all industry sectors fell 20% in 2014

The number of retail administrations in England fell by 35% between 2013 and 2014, according to the latest annual research from Deloitte, the business advisory firm. During 2014, 119 retailers entered into administration, compared with 183 in 2013. Almost a third (39) of the appointments occurred in the first three months of the year.  

The total number of administrations across all industry sectors tracked in the analysis* was down 20% on 2013, with 1,302 businesses going into administration. Almost all industries saw a decrease in administrations during 2014, with only the financial services and IT sectors witnessing an increase of 2.5% and 14% respectively. Regionally, almost half of administrations took place in London (328 appointments) and the North West (280 appointments)**.

Lee Manning, restructuring services partner at Deloitte, said: “After a few turbulent years, we saw fewer casualties in the retail sector in 2014. As the economic situation improved, consumer confidence increased and the retail industry benefitted. Although the overall trend for the sector is positive, there will always be individual retail insolvency cases, as with the clothing chain Bank Fashion this week.

“While the retail sector has seen the strongest improvement this year, with a 35% reduction in administrations, it is also encouraging to see the hospitality and leisure industry not far behind, with a 34% decrease on 2013.

“There is a clear pattern developing whereby we expect to see a permanent shift away from using administration as a restructuring tool for businesses with a greater emphasis towards constructive debtor-driven solutions involving negotiations with creditors, either informally or through the use of CVA’s where in both circumstances companies will work alongside restructuring professionals.”

End

Notes to editors

*Breakdown by sector

 

Q1

14

Q2

14

Q3

14

Q4

14

Cumulative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

13

Q2

13

Q3

13

Q4

13

Cumulative

Appointments 2014

Appointments 2013

 

 

 

 

 

 

 

 

 

 

 

Property, Construction, Electrical, Installation &
Plumbing

92

56

53

50

251

91

93

57

81

322

Financial Services

13

8

9

11

41

10

11

12

7

40

Healthcare & Social Services

10

12

6

11

39

11

8

15

11

45

Hospitality & Leisure

30

17

27

19

93

45

37

25

34

141

Film & Photographics, Media & IT

20

20

23

27

90

14

19

20

26

79

Manufacturing Industries

79

57

55

45

236

67

70

68

68

273

Mining, Energy & Agriculture

5

7

3

9

24

9

6

3

9

27

Printing & Publishing

8

9

7

13

37

13

9

16

7

45

Recruitment & Business Services

60

46

50

54

210

83

70

56

68

277

Retailing

39

27

28

25

119

47

48

47

41

183

Transport & Communications

10

21

13

10

54

30

13

18

17

78

Wholesale & Distribution

25

27

20

16

88

24

24

20

27

95

Other Services

4

3

7

6

20

3

7

5

9

24

 

 

 

 

 

 

 

 

 

 

 

Grand Total

395

310

301

296

            1,302

447

415

362

405

            1,629

 

** Breakdown by region

 

Q1

14

Q2

14

Q3

14

Q4

14

Cumulative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

13

Q2

13

Q3

13

Q4

13

Cumulative

Appointments 2014

Appointments 2013

 

 

 

 

 

 

 

 

 

 

 

Property, Construction, Electrical, Installation & Plumbing

92

56

53

50

251

91

93

57

81

322

Financial Services

13

8

9

11

41

10

11

12

7

40

Healthcare & Social Services

10

12

6

11

39

11

8

15

11

45

Hospitality & Leisure

30

17

27

19

93

45

37

25

34

141

Film & Photographics, Media & IT

20

20

23

27

90

14

19

20

26

79

Manufacturing Industries

79

57

55

45

236

67

70

68

68

273

Mining, Energy & Agriculture

5

7

3

9

24

9

6

3

9

27

Printing & Publishing

8

9

7

13

37

13

9

16

7

45

Recruitment & Business Services

60

46

50

54

210

83

70

56

68

277

Retailing

39

27

28

25

119

47

48

47

41

183

Transport & Communications

10

21

13

10

54

30

13

18

17

78

Wholesale & Distribution

25

27

20

16

88

24

24

20

27

95

Other Services

4

3

7

6

20

3

7

5

9

24

 

 

 

 

 

 

 

 

 

 

 

Grand Total

395

310

301

296

            1,302

447

415

362

405

            1,629

 

About Deloitte
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.

Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.

The information contained in this press release is correct at the time of going to press.

Member of Deloitte Touche Tohmatsu Limited.


Will Black
Deloitte LLP
+44 (0) 20 7007 8242
+44 (0) 78 2511 3222
wiblack@deloitte.co.uk

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