Austin Reed - signs were evident
Rachel Mainwaring, Operations and Managing Director Creditsafe UK commented:
"It is has been one of the worst weeks in recent memory for the British retail industry with two distinguished high street brands, Austin Reed and BHS, collapsing into administration. Austin Reed recently hit the negative milestone of paying invoices an average of 41 days beyond terms, the number of days on average settlement is overdue. Challenges managing cash flow and deteriorating payment trends are often strong indicators a business in in trouble. Questions will be asked whether high street retailers with high inflexible fixed costs, often tied to long-term leases, can sustain their current model. Both BHS and Austin Reed have struggled with costs associated with their property portfolio."