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Retail administrations fall in 2013 2 January 2014

The number of retail companies entering administration fell 6% in 2013 compared with 2012, according to new research from Deloitte.

183 retailers fell into administration during 2013 – the same number as in 2011 – compared with 194 in 2012.

However, the fourth quarter of 2013 saw 41 retailers entering administration, compared with 37 in Q4 2012, representing an 11% increase.

Lee Manning, restructuring partner at Deloitte, said: “The high street has undergone a re-balancing, and this is what is being reflected by these figures.

“A year ago we were about to see HMV, Blockbuster and Jessops enter administration, but I would not expect as many high profile casualties this time round.

“This does not mean demand is increasing, more that the clearout will benefit those still standing in 2014. Christmas trading appears to have been reasonable, though not spectacular, as customers opted to stay away from the high street in favour of click and collect.

“It is essential that retailers address the fundamental issues affecting the industry. 2014 is likely to be marked by further closure programmes, both within and outside of formal insolvency processes.”

Overall, 1,629 businesses entered administration throughout 2013, an 11% decrease year-on-year (2012: 1,833), according to Deloitte.

There was a 17.5% decrease in administrations in the hospitality and leisure sector (141 vs. 171), a 4% decrease in manufacturing administrations (273 vs. 284) and a 24% decrease in property and construction administrations (322 vs. 426).

The only sector to see an increase in administrations was the healthcare and social services sector, which saw a 7% increase (45 vs. 42).

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