FEARS that the UK High Street is fast becoming an insolvency zone have gathered pace, as new research reveals an unprecedented drop in shoppers’ footfall across England and Wales.
Monsoon Accessorize, a familiar dual brand across Yorkshire and the North East, is set to become the latest casualty of the online revolution after it was reported the fashion retailer is to close dozens of stores amid insolvency concerns.
It has a major presence across Yorkshire and the North East with High Street stories in Leeds, York, Harrogate, Huddersfield, Yarm, Middlesbrough, Durham, Newcastle, Morpeth and Bedlington.
Earlier this year, the German arm of British retail chain filed for insolvency.
As the number of insolvencies grows, new research has unveiled a 4.2 per cent decline in UK retail footfall during the past 12 months.
And although Yorkshire and the North East fared best, posting just a 0.5 per cent drop in shoppers, it is still exposed to a raft of store closures because of insolvency.
Stores across Leeds, Bradford, Wakefield, York, Hull, Sheffield, Barnsley, Doncaster, Harrogate, Halifax, Huddersfield, Middlesbrough, Darlington, Newcastle, Sunderland and Durham have not been immune from insolvency.
Worst-hit insolvency victims were in Wales and the South West, where footfall plummeted 9.2 per cent; and Scotland and Northern Ireland, which reported a 5.5 per cent drop.
Almost 2,500 stores vanished from Britain’s 500 biggest high streets in 2018 as a result of insolvency, many of them in Yorkshire and the North East.
As a result, insolvency claimed nearly 85,000 retail jobs – again thousands across Yorkshire and the North East.
As one of Britain’s biggest privately-owned clothing firms, Monsoon has now appointed advisors to oversee its insolvency as it considers closing stores just days after another High Street stalwart, Debenhams, announced plans to close up to 50 stores over the next 3 years and to approach creditors to approve a CVA.
Media reports suggest Monsoon Accessorize too remains on the brink of a Company Voluntary Arrangement (CVA), an option often considered viable by firms facing bankruptcy.
2018 witnessed one of the worst years on record for High Street insolvencies. A record 1,000 retail businesses went into administration between January and September alone.
A recent report in the Daily Mail captured many of the big names on the Yorkshire and North East High Street that have recently fallen into insolvency, including:
- Carpetright – 92 store closures
- Toys R Us – 2,000 redundancies after it fell into administration
- House of Fraser –rescued from the verge of administration
- Maplin – insolvency victim putting thousands of jobs at risk
- Orla Kiely – collapsed into administration amid insolvency fears
- Mothercare – 60 store closures announced to head off insolvency fears
- Poundworld – collapsed into administration
- Homebase – 42 DIY centres closed
- Marks & Spencer – the Leeds-born company announced 100 store closures by 2022
- HMV – collapsed into administration
- LK Bennett – filing for administration
- Pretty Green – Liam Gallagher’s fashion label filed for administration
For more information about the work of our licensed insolvency practitioners and businesses recovery teams in Leeds, Bradford, Harrogate and Darlington, please call us on 03300 244 660 or email firstname.lastname@example.org