- Danielle Wightman-Stone |
The number of retail administrations in England has fallen by 32 percent in the first half of the year, according to research from business advisory firm, Deloitte.
This year the number of collapsed stores fell to 45, compared with 66 seen in the first half of 2014 and less than half of the total of 95 retailers that went into administration in the first six months of 2013.
The British retail sector has been hit over the years by numerous high profile administrations including lingerie brand La Senza and fashion chain Bank, but Deloitte adds that the total number of administrations is continuing to drop, in 2013 there were 183, while last year there were only 119.
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: “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.
“The overall outlook is positive, and as consumer finances continue to improve this will be felt even more in the retail market.”