Retail administrations down 35% in 2014
New research has shown that the number of retail administrations in England fell by 35% between 2013 and 2014.
The annual research from business advisory firm Deloitte reveals that 119 retailers entered into administration last year compared with 183 in 2013. Almost a third of the appointments occurred in the first three months of the year.
The total number of administrations across all industry sectors tracked in the analysis was down 20% on 2013, with 1,302 businesses going into administration. Almost all industries saw a decrease in administrations during 2014, with only the financial services and IT sectors witnessing an increase of 2.5% and 14% respectively. Regionally, almost half of administrations took place in London and the North West.
Lee Manning, restructuring services partner at Deloitte, said: “After a few turbulent years, we saw fewer casualties in the retail sector in 2014. As the economic situation improved, consumer confidence increased and the retail industry benefitted.”
Never Miss a Retail Update!He added: “There is a clear pattern developing whereby we expect to see a permanent shift away from using administration as a restructuring tool for businesses with a greater emphasis towards constructive debtor-driven solutions involving negotiations with creditors, either informally or through the use of CVA’s where in both circumstances companies will work alongside restructuring professionals.”
