RETAIL ADMINISTRATIONS have rocketed to a two-year peak, according to figures compiled by Deloitte.
Company administrations in the retail sector increased 30% for the first quarter of the year compared to the same period a year ago.
Lee Manning, (pictured) reorganisation services partner at Deloitte, said: “It comes as no surprise that the retail sector has been worst affected. The sector is heavily reliant on buoyant consumer spending and the increase in VAT and the government’s austerity measures are undoubtedly hitting the sector hard.
“During the economic downturn, companies experiencing financial difficulty were able to rely on low interest rates and HMRC’s favourable Time to Pay scheme in order to make ends meet. However, as HMRC attempts to recoup lost revenue, we are likely to see a more hardened approach being taken.
“We have already seen a decline in the acceptance of CVAs, often used as a last resort by companies attempting to avoid administration.”
Overall company collapses in the first quarter of 2011 increased 21% on the previous quarter.
The government’s quarterly statistics on insolvency figures are due for release on Friday 6 May.
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