Retail failures down by 19% in 2015
The number of retailers entering administration fell from 119 in 2014 to 96 during 2015, a decrease of 19%. The number of administrations in all sectors in England also fell from 1,302 in 2014 to 1,147 companies last year, a 12% decrease, according to analysis from Deloitte.
Lee Manning, restructuring services 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 two out of the eleven sectors reported on saw an increase in administrations – Mining, Energy & Agriculture with a 12% increase and Transport & Communication with a 5% increase. Meanwhile the technology and media sector saw the biggest drop in administrations, 40% from 90 to 54.