More disappointing news from the high street over the last couple of days, what with US based MEXX announcing the closure of its 61 retail outlets in the UK, and ladies fashion retailer Select Retail going into administration last friday.(even though half of its 250 stores have been sold to the management team over the weekend) Both companies blame the tricky trading conditions this year for the decisions taken. Apart from the tough competition in the high street itself, internet sales of clothing items jumped dramatically in January by 32% year on year, so the traditional stores are being hit from all angles it seems. From a credit risk point of view, suppliers to the high street outlets should be monitoring the situation very closely, looking for signs of distress like a slowing down of trade invoice payments, as undoubtedly, more companies on the high street will feel the heat.I think I’d be asking to see monthly management accounts from some of my more risky customers if I was a supplier on open credit terms.If you don’t ask, you don’t get!
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children