Fewer shops close as retail administrations fall 32% in the first half of the year
7 July 2015
- 45 retailers went into administration for the first six months of 2015, compared with 66 in the same period of 2014
The number of retail administrations in England has fallen by 32% this year, according to research from Deloitte, the business advisory firm. In the first six months of this year, 45 retailers entered into administration, compared with 66 in the first six months of 2014. This year’s figure is less than half the total of the 95 retailers that went into administration in the first six months of 2013.
Lee Manning, restructuring services partner at Deloitte, said: “After a few turbulent years and something of a clear-out, the retail sector is now benefitting from the calmer waters of a stable economy. In fact, the only well-known retail insolvency this year has been Bank Fashion.
“Meanwhile, these figures align with our expectation of a shift away from using administration as a restructuring tool for businesses. The emphasis is towards constructive debtor-driven solutions involving negotiations with creditors, either informally or through the use of CVAs where in both circumstances companies will work alongside restructuring professionals.”
Ian Geddes, UK head of retail at Deloitte, added: “Consumers do not shop channels – they shop retailers and brands. Therefore it is essential that retailers continue to focus on how they integrate online and in-store retail to best serve their customers.
“Retailers’ requirements for their stores will continue to change. For many this will mean fewer stores, while for some it may mean more stores to support the growth of their online sales. For other retailers it requires a complete rethink of what the purpose of a store is, as formats are adapted to act primarily as points for fulfilment and returns. The overall outlook is positive, and as consumer finances continue to improve this will be felt even more in the retail market.”
Notes to editors
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.