Last month’s release of the 2017 insolvency figures did not make good reading for UK clothing retailers, who suffered from a rise in liquidation rates.
Research carried out by The Insolvency Service found that 17,243 companies entered insolvency over the course of the year, which represents a 4.2% increase year-on-year.
Other firms are now said to be on ‘high alert’ and exhibiting signals of financial distress. Such indicators include large falls in revenue and poor payment history.
Triggers of these symptoms have been identified as a fall in consumer spending and growing payroll costs. Both of these have apparently further compounded the pressure that shops have come under from the rising number of online-only outlets.
Growing staff costs have also been mooted as a factor as a result of the introduction of the living wage, whereas predominantly Internet-based businesses have comparatively been shielded from this.
Either way, with consumer spending hitting a five-year low last year, retailers are in the midst of facing some of the most tricky trading conditions since the recession.
In understanding the complexities and sensitivities of financial pressure, the Leeds, Harrogate, Bradford and Darlington-based teams here at Walsh Taylor work with clients to ensure that the best possible outcome is secured.
If you therefore reside in Castleford, Pontefract, Keighley, Knaresborough or the surrounding Yorkshire area and would like a free-of-charge meeting to talk through some of the issues you are experiencing, please either call 03300 244 660 or email firstname.lastname@example.org for confidential advice.