UK retailers on brink of collapse surges by a quarter, report warns
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The number of UK retailers on the brink of collapse surged by a quarter in recent months, a new report has warned. The strain on the retail sector follows new data showing a drop in the number of people heading to the shops during Boxing Day sales. The latest Red Flag Alert report from insolvency specialist Begbies Traynor found 2,124 UK retailers were in critical financial distress between October and December 16.
This was 25% higher than in the previous three months, between July and September, although marked a slight decline of nearly 1% compared with the same period a year ago. The latest figures include a 29% quarter-on-quarter surge in the number of general retailers on the brink of collapse, and a 17% jump among food and drug retailers.
This year has highlighted the resilience and adaptability of some UK retailers, but the sector remains under significant strain. Online sellers, takeaway food shops and mobile food stands, and convenience shops were among the businesses struggling the most.
Julie Palmer, a partner at Begbies Traynor, said: “This year has highlighted the resilience and adaptability of some UK retailers, but the sector remains under significant strain. “Clearly, some retailers have found ways to manage financial pressures effectively, but others, particularly in general retail, are struggling under the weight of rising operational costs and squeezed consumer spending.”.
