Business failures fell by 11% in 2013
THE number of retailers falling into administration in 2013 fell 6% according to research from Deloitte.
The firm said that 183 retailers entered administration in 2013, compared with 194 in 2012 and 183 in 2011.
However, there was an increase of 11% in the last three months of the year compared to the fourth quarter of 2012 – down to 37 from 41.
In total, 1,629 businesses went into administration in 2013, compared with 1,833 last year, a fall of 11%. Almost all of the sectors tracked in the Deloitte analysis saw a decline in the number of business failures this year, including some of those sectors most affected by the economic difficulties of the past five years.
There was a 17.5% decrease in administrations in the hospitality and leisure sector, a 4% decrease in manufacturing administrations and a 24% decrease in property and construction administrations. Only the healthcare and social services sector saw an increase in administrations, up 7%.
Restructuring partner Dan Butters said: “The high street has undergone a re-balancing, and this is what is being reflected by these figures. A year ago we were about to see HMV, Blockbuster and Jessops enter administration, but I would not expect as many high profile retail casualties this time round.
“This does not mean demand is increasing, more that the clear out will benefit those still standing in 2014. Christmas trading appears to have been reasonable, though not spectacular as customers opted to stay away from the high street in favour of click and collect. It is essential that retailers address the fundamental issues affecting the industry. 2014 is likely to be marked by further closure programmes, both within and outside of formal insolvency processes.
“What’s most notable is the decline of administrations in the property and construction industry. This is a significant reduction, and reflects the recovering health of the sector. This drop has, unsurprisingly, had a positive knock-on effect for the hospitality and leisure sector, which has also seen a decrease in administrations.”
