Retail sector boost as administrations drop

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The number of retail administrations across England fell by 35 per cent between 2013 and 2014, according to the latest annual research from Deloitte.

During 2014, 119 retailers entered into administration, compared with 183 in 2013. Almost a third (39) of the appointments occurred in the first three months of the year.

The total number of administrations across all industry sectors tracked in the analysis was down 20 per cent on 2013, with 1,302 businesses going into administration.

Almost all industries saw a decrease in administrations during 2014, with only the financial services and IT sectors witnessing an increase.

Regionally, almost half of administrations took place in London (328 appointments) and the North West (280 appointments).

Dan Smith, restructuring services partner at Deloitte in the North West, 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 per cent reduction in administrations, it is also encouraging to see the hospitality and leisure industry not far behind, with a 34 per cent decrease on 2013.”