Half of retail jobs threatened by administration have been saved – R3

MORE than half of all retail jobs put under threat by the insolvency of a retail employer have been saved, according to research just published by insolvency trade body R3.

Analysis of major retail failures since 2011 reveals that 53% of jobs have been preserved during the insolvency process, while 48% of stores survived.  

Major retailers such as Clinton Cards, Blacks, Game and Aquascutum have all continued trading despite falling into insolvency.

According to R3 Midlands Chairman Matthew Hammond business rescue has been helped in part by the introduction of the Enterprise Act in 2002; nevertheless he said retailers still needed to be more business-savvy if they are to survive.

Mr Hammond, also a partner at PwC in the Midlands, said: “The Enterprise Act 2002 introduced greater flexibility for the administration process, enabling more jobs and businesses to be saved.   However, many store portfolios are too large at present, so shedding some unprofitable branches is a necessary evolution.  

“The over-riding message is that retailers must adapt to the current economic environment or face the financial consequences.”