R3 predicts high street 'bloodbath'
Nearly two dozen well known retailers will bite the dust after Christmas, predicts insolvency professionals
More than 20 household names will disappear from the high street in a new
year “bloodbath”, warns insolvency trade body
R3.
After 22 well-known retailers collapsed at the beginning of 2009, R3’s
members have flagged up 23 names that face the same fate in 2010.
“Rising unemployment and decreased spending in the lead up to Christmas
coupled with heightened creditor aggression in the New Year leaves the retail
sector facing another bloodbath,” said R3 president Peter Sargent.
Nine out of ten R3 members believe retailers will hold off insolvency until
after Christmas to recoup funds. Six out of ten believe creditors also hold off
from pushing businesses into insolvency at that period in the hope they will
receive a better payment.
Woolworths, Zavvi and MFI disappeared off the high street in 2009, while USC
entered insolvency.
Further reading:
Lessons to be learned from
Titcheners’ collapse
Suppliers are urged to stop holding
firms ‘to ransom’
