Fashion businesses feel financial distress

Almost 1,500 apparel retailers are experiencing “significant financial distress" this Holiday season, compared to 666 businesses during the final quarter of 2013, according to research by professional services group Begbies Traynor.

Fashion retailers are worse off this Christmas

The report suggests retailers are considerably worse off this Christmas and fashion retailers are among those hit hardest, with the number of struggling businesses up 123 percent year-on-year.

Many have reported lower than expected profit forecasts following the mild autumn, which left them with excess winter stock.

Julie Palmer, partner and retail expert at Begbies Traynor, told Drapers: “Black Friday was lauded as the biggest day of retail sales this year, but it seems the only real winners were the largest online retailers and big brand high street chains with the biggest discounts and best online offerings, such as Amazon and John Lewis."

She said others were forced to slash prices and profit margins, but sales volumes have failed to keep pace.

“No amount of last minute present buying will turn around the fortunes of the general retailers before the sales frenzy starts on Boxing Day," she added.