The number of retailers in significant financial distress has increased by a fifth over the past year, with almost 50,000 companies struggling to stay afloat, according to Begbies Traynor, the insolvency consultancy.
As online competition, low consumer confidence and rising costs continue to put pressure on the high street, the restructuring specialist warned that many businesses were being pushed “to the point of no return.”
An analysis found that 42,958 retailers ended the first quarter of the year in significant financial distress, up 21 per cent on the year before. General retailers were the worst hit, with 30,668 ending the first three months in difficulty, up 25 per cent over the year.
