Partner Article

UK retail administrations jump in first quarter

UK retailers going into administration has jumped by 38% in the first quarter as the UK slumped into a double dip recession.

In a survey by accounting firm Wilkins Kennedy, it was found that 670 firms went into administration, up from 486 at the end of 2011.

Retailers succumbing to the difficult conditions included Peacocks, Game and Clinton Cards.

Commenting on the figures, Anthony Cork, a partner at the firm said: “Last year was bad but this year is even worse. Retailers are still struggling with rents that they feel are far above the market rate and banks are particularly reluctant to extend credit to struggling retail businesses.

Last week figures indicated that UK retail sales fell at their fastest rate in more than two years in April 2012, while GDP saw the UK fall even deeper into recession than initially thought.

UK consumers are now being squeezed by prices rising faster than wages and austerity measures.

Many individuals are also concerned about job security, a shaky housing market and the eurozone debt fallout.

This was posted in Bdaily's Members' News section by Ruth Mitchell .