I’m a high street store – get me out of here - I’m going bust

From Spudulike to Patisserie Valerie shops, cafes, restaurants, take-aways and department stores have been going to the wall in numbers not seen since the Credit Crunch in 2008. The casualties are particular high in the retail sector.

Ian Carrotte of ICSM said: “Every week another big name goes into administration with our members keeping everyone in ICSM up to date with any problems they have with companies teetering on the brink. It’s meant our members have got them themselves out of potential trouble by restricting credit to these firms and ensuring they minimise their losses or escape without joining the long list of creditors.”

Writing in the Retail Gazette this week Georgia Wright said: “There’s no denying the unfortunate fact that 2019 has been yet another challenging year for UK retail, partly due to a high number of businesses falling into administration. According to auditing giant KPMG, 44 retail businesses entered administration in just the six months to September, including a number of high street stalwarts.

“Broadly speaking, administrations are a process that can be subdivided into two categories: trading administrations, as seen with BHS in 2016, and pre-pack administrations – as seen today with Mamas & Papas. The insolvency process is different to a CVA, which is what Sir Philip Green’s Arcadia Group retail empire opted for over summer. The general rule of thumb is that business would opt for a CVA when the only other likely alternative is to enter administration.

Writing in the Guardian Sarah Butler listed retail failures that have caught the eye this year.

She wrote: “Thousands of high street jobs have been lost this year as a result of administrations and thousands more are at risk as Mothercare, Debenhams and Forever 21 prepare for closures. Among the big high street names affected are: Mothercare. It is to close all 79 UK stores, putting 2,500 retail jobs at risk after collapsing into administration on Tuesday. Regis/Supercutsh ad 220 salons and 1,200 staff when it went into administration in October.

“Bonmarché had 318 stores and 2,887 employees when it collapsed in October. The retailer is still trading as administrators seek a buyer. Watt Brothers,the Scottish department store chain had 11 stores and 306 employees when it went into adminstration in October. All the stores have closed and the majority of staff have lost their jobs. And Links of London with 35 stores and 350 staff, the jewellery chain went into adminstration in October but its sites are still trading while a buyer is sought.”

Other big names in retail to go include:

Forever 21 with 290 employees, Albemarle & Bond closed its 116 stores in September with the loss of about 400 jobs, Karen Millen and Coast had 32 stores and 177 concessions, employing 1,100 people. Jack Wills with 100 stores and 1,700 staff while Spudulike closed all 37 stores with the loss of about 300 jobs in August. Bathstore, Select, Debenhams, Pretty Green, Office Outlet, LK Bennett and Patisserie Valerie also went into administration.

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 'About Us' page of the website www.icsmcredit.com or send an email to Ian.carrotte@icsmcredit.com