More UK retailers in critical financial distress, as Boxing Day sales footfall drops– business live
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Rolling coverage of the latest economic and financial news.
The number of UK retailers facing “critical” financial problems has risen by more than 25% in the last three months, new data shows.
Highlighting the pressures on the sector, after a disappointing Boxing Day, restructuring specialist Begbies Traynor has reported there were 2,124 retailers in “critical financial distress” in the first 11 weeks of the October-December quarter.
“Moreover, the weaker-than-expected retail sales performance in November, traditionally a critical month for the sector, further underscores the tough trading conditions, as consumers hold off on purchases amid low confidence and rising prices.
“Adding to this uncertainty, the measures announced in the Autumn Budget, including the planned increase to employers’ National Insurance Contributions, will significantly dial-up the challenges faced by these businesses. These changes, alongside increases to the Minimum Wage, will negatively impact cash flow and, consequently, we expect elevated insolvency levels across this sector during 2025.
