R3 predicts high street 'bloodbath'

More than 20 household names will disappear from the high street in a new year "bloodbath", warns insolvency trade body R3.

After 22 well-known retailers collapsed at the beginning of 2009, R3's members have flagged up 23 names that face the same fate in 2010.

"Rising unemployment and decreased spending in the lead up to Christmas coupled with heightened creditor aggression in the New Year leaves the retail sector facing another bloodbath," said R3 president Peter Sargent.

Nine out of ten R3 members believe retailers will hold off insolvency until after Christmas to recoup funds. Six out of ten believe creditors also hold off from pushing businesses into insolvency at that period in the hope they will receive a better payment.

Woolworths, Zavvi and MFI disappeared off the high street in 2009, while USC entered insolvency.

Further reading:

Firms struggle to stay afloat

Lessons to be learned from Titcheners' collapse

Suppliers are urged to stop holding firms 'to ransom'