Retail administrations up by 15% in first quarter of 2012
In all, 69 retailers filed for administration compared with 60 in the same period last year
THE NUMBER of retailers entering administration in the first quarter of this year has risen by 15%, according to research by Deloitte.
In all, 69 retailers filed for administration compared with 60 in the same period last year.
Retail administrations in the first quarter of 2012 went up by 64% on the previous quarter, which saw 42 enter administration.
Lee Manning, restructuring services partner at Deloitte, said: “The first quarter of 2012 is particularly significant given the high-profile nature of the companies we have seen enter administration: Peacocks, Game, La Senza, Blacks and Past Times.
“The number of job losses that came as a result of these administrations was almost 10,000 out of the 22,000 employed by those companies. In contrast, the first quarter of 2011 saw far lower levels of job losses. For 2011 and the first quarter of 2012 the largest 15 retail insolvencies had 2,800 stores and only 1,350 stores have survived; an attrition rate of 52%.”
Overall, the amount of companies going into administration, excluding retailers, in the first quarter of 2012 declined by 10%, from 497 in the same period last year to 447.