It has been reported that UK retailers suffered their second worse January since the British Retail Consortium’s (“BRC”) survey began in 1995. Overall like for like sales were down 0.3% compared to 2011 and the 2.1% increase in total sales compared badly to the 4.2% rise recorded for January 2011. The worst hit sectors were non-food, food and drink and home accessorises.
It is thought that concerns have escalated about jobs, wages and household costs resulting in consumers reducing their spending.
Are we likely to see more high profile retailers entering into formal insolvency procedures?
Businesses should consider their financial position and address concerns sooner rather than later or risk insolvency. Professional advice should be sought at the earliest opportunity where there are concerns.
By commercial solicitor, Nicola Whittle