Midlands retail failures down by 50% – Deloitte
THE number of retailers entering administration in the Midlands fell by 50% last year, according to analysis from accountancy and advisory firm Deloitte.
Although 16 retailers failed in the region in 2014, that figure fell to just eight in 2015.
The number of administrations in all sectors in the Midlands also fell, from 185 in 2014 to 162 companies last year, a 12% decrease.
Ian Barnes, partner at Deloitte, said: “We seem to have avoided what was once a traditional New Year clear-out of the High Street, with only Brantano and Blue Inc calling in the administrators this month.
“Although the clothing sector was heavily impacted by unseasonably warm weather, the value of December‘s online sales figures was well ahead of expectations.
“The annual data reminds us that administration is being used less and less as a restructuring tool, especially by the medium and larger players in the retail sector.
“Solvent restructuring practices are more common due to the current availability of funding and a pattern is emerging whereby we are working with companies on restructuring and refinancing.”
The English regions saw a decrease in all sectors, with the biggest drop being in Yorkshire and the North East of 18% from 203 in 2014 to 167 in 2015. The smallest decrease was in the North West, at 7%, while London saw a reduction of 9% in the number of administrations.
Only four out of the 13 sectors reported on saw an increase in administrations – property, construction, electrical, installation & plumbing with a 16% increase, healthcare and social services with a 33% increase, manufacturing industries with an 23% increase and ‘other services’ with a 50% increase.
