15 major retailers could go bust after Xmas
Woolies and MFI not the end of the bloodshed
As many as 15 major high street retailers could collapse in the near future,
Begbies Traynor’s Nick Hood has warned.
Hood said that mounting finanical pressures on the businesses have seen
earlier discounting, which in turn will hit them at their most profitable time.
The problem facing the management of retail chains is whether they can find
funding to restock in January, pay their VAT bills and survive through until
Christmas starts again next October,’ Hood told the
BBC.
After Christmas they have less stock and more cash, which increases makes
them more attractive for creditors to force them into administration if they
believe the long-term future of the retailer is not viable.
MFI has already been shut by administrators, while Woolworths will close in
January.