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ICSM News: bonfire of the jobs as the High Street loses 250,000 workers in 12 months while ICSM warns of worse to come

On average every day during the Covid-19 crisis 48 shops have closed never to reopen. Local Data Company compiled the information to reveal the shocking effect of the Government’s policy of lockdowns to combat and pandemic.

“It’s not a surprise but it is depressing that so many retailers have closed their doors for good,” said Ian Carrotte of ICSM. “Supermarkets have been given a free pass at the expense of many retailers while Amazon have been allowed to clean up with no extra burden of taxation – unlike small high street businesses deemed as no-essential by Rishi Sunak. Take away anyone’s customers and no business is viable.”

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Bonfire of retail jobs

Research conducted by the Local Data Company showed that 17,500 chain stores and pubs, cafes and other hospitality venues but not independent retailers have closed their doors for good – an average of 48 a day. The current estimate of jobs lost in these sectors in the last 12 months is around a quarter of a million. Clearly some stores were already in trouble as were many pubs but Covid-19 lockdowns have decimated this section of the economy. On the flip side 7,665 stores were opened in the last year although some of these came from new owners buying shops in administration.

“This is the worst set of figures since the Credit Crunch,” said Ian Carrotte, “and although there is Government help in the form or furlough payments and grants there will be an even greater number of closures once furloughing and the pandemic ends.”

The BBC’s business reporter Emma Simpson said: “Shopping centres saw the largest proportion of their stores closed, whilst retail parks fared the best. Fashion retailers and betting shops were the worst performing categories. Meanwhile takeaway outlets, and cake shops, enjoyed some growth. And city centres are doing worse than suburbs and commuter towns, driven by the number of people working from home.”

Ian Carrotte said there was a major problem of unpaid invoices to suppliers of these businesses when they close and a hit to the economy for more than 250,000 workers out of a job.

“Many retail workers are women who rely on public transport so the idea they can switch to a distribution centre out of town is unrealistic,” he said. “We need our high streets for workers, for retailers, for hospitality and all the businesses that supply them. That has to be a priority for this country as they are the heart of much of the UK’s business.”

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Chocolate shock

The makers of luxury chocolate Thorntons are to close all their stores. The firm will continue online to supply boxes of chocolates and to stock various retailers and supermarkets with their products and independent shops that use their branding to boost sales will continue in business.

A Thorntons spokeswoman said: "In addition to our own retail estate, we work closely with around 100 other franchise stores that sell Thorntons product within a broader retail store environment - such as cards stores, gift stores and post offices."

"Our franchise partners, alongside our grocery partners and e-commerce, remain a key part of our strategy for the future of Thorntons. The Thorntons website store locator will continue to reflect the franchise stores available to customers."

About ICSM Credit

ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel - while at the moment there's a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach - ask for details from Paul.

For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.

To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the top left of the home page of the website www.icsmcredit.com or send an email to Ian.carrotte@icsmcredit.com

For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk