The retail sector received a welcome boost as the number of administrations in the industry dropped by 35% in 2014 year-on-year.
According to figures from Deloitte there were 119 retail administrations during the last year, down over one-third from 183 in 2013.
Just under one-third of the administrations (93) occurred within the first three months of the year.
The overall number of administration cases fell 20% to 1,302 businesses going into administration.
Lee Manning, restructuring services partner at Deloitte, said: “After a few turbulent years, we saw fewer casualties in the retail sector in 2014. As the economic situation improved, consumer confidence increased and the retail industry benefitted.
“ Although the overall trend for the sector is positive, there will always be individual retail insolvency cases, as with the clothing chain Bank Fashion this week.”
“While the retail sector has seen the strongest improvement this year, with a 35% reduction in administrations, it is also encouraging to see the hospitality and leisure industry not far behind, with a 34% decrease on 2013.”
The overall number of administration cases in 2014 fell 20% to 1,302, with only the financial services and IT sectors experiencing an increase of 2.5% and 14% respectively.
Manning said the statistics show a pattern of attitudinal change regarding administrations with a “greater emphasis towards constructive debtor-driven solutions involving negotiations with creditors, either informally or through the use of CVA’s where in both circumstances companies will work alongside restructuring professionals.”