4R Blog

RSS Feed

Thousands of UK retailers 'facing closure'

Date Added: 02/09/2013  

Thousands of retail companies in the UK are at risk of closure in the coming months, according to a new report from former Iceland and Wickes chief executive Bill Grimsey.

He explained that as many as one-eighth of firms in the sector could close down over the course of the next three years, reports the Financial Times.

Mr Grimsey noted that this is due to the fact that consumer spending has slumped and this has resulted in nearly half of the UK's retailers coming under extreme financial pressure.

Analysis by Company Watch, which is a financial risk management group Mr Grimsey commissioned to carry out research, showed smaller retailers are under even more threat of going under, with two-thirds of them facing financial issues.

Companies might need to take business debt advice at an early stage if they are to be able to survive their financial problems and come through to a brighter future.

"We are in a world where no bank or creditor wants to push the company over the edge and crystallise the loss, unless they have no alternative," said Nick Hood, head of external affairs at Company Watch. He added that while not all of the companies being threatened with going under are going to fall, many are at risk of failing.

Mr Grimsey, who set up the review as alternative to the Portas Review, described the retail sector as being "precariously poised" at the current time, although the legitimacy of his report has been questioned by some parties.

Simon Wolfson, the chief executive of Next, which is one of the largest retailers in the UK, stated that a suggestion in the report that out-of-town retail developments should be subject to ministerial review is "insane".

This comes after the editors of the Good Pub Guide warned that thousands of UK pubs could be at risk of closing down in the next 12 months, threatening many jobs up and down the country.

Alisdair Aird and Fiona Stapley explained many of those facing closure offer "indifferent" food, drink and service and this is why they are struggling to stay afloat.

Need advice on Winding up Orders? Call 0800 9020123

Posted by Michael Beam

Get the Help You Deserve

0800 90 20 123

Urgent Help Call 24/7

020 7183 2606

We'll Call You

Request a Callback