Insolvency & Rescue Solutions for Retail Businesses

The UK retail landscape continues to face significant challenges, with retail insolvency rates remaining a concern. According to the British Retail Consortium, one in seven shops now stands empty on UK high streets and shopping centres, painting a stark picture of the sector’s struggles. While the pandemic accelerated these issues, high-street retailers have been grappling with difficulties for years.

Fashion stores have been particularly hard hit, as consumer behaviour shifts dramatically. The rise of online shopping, coupled with changes in work patterns and evolving social habits, has significantly impacted demand for traditional retail offerings. Many retailers now find themselves needing to adapt their business models to meet changing consumer preferences and shopping behaviours.

At Company Debt, we bring extensive experience in both restructuring and closing retail businesses. If your retail operation is facing financial challenges, we invite you to reach out for a free, no-obligation discussion with one of our licensed insolvency practitioners.

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Retail Pressure Points

Customers turn away from the high street

Shopping malls blighted by empty units

Online continues to expand

What are the Reasons for Retail Insolvency?

The UK retail sector faces significant challenges, with high street stores particularly affected. Here’s an overview of the key issues:

Shift to online shopping: E-commerce continues to grow, while many town centres struggle to attract shoppers.
High costs: Expensive parking and difficult access deter visitors from town centres, favouring out-of-town retail parks.
Changing consumer habits: Shopping malls, especially those focused on fashion, now have vacancy rates of around 20%.
Economic pressures: The pandemic has accelerated existing trends, leading to a surge in retail insolvencies.

Some positive signs exist, such as New Look’s profit after a Company Voluntary Arrangement. However, long-term trends suggest a transformation of high streets, with some areas considering alternative uses like parks.

The food retail sector has shown resilience, with supermarkets and online grocers like Ocado seeing significant growth during the pandemic.

High-profile failures include Debenhams, Arcadia Group, and Victoria’s Secret UK. PwC data revealed over 17,500 chain store closures in 2020 – an average of 48 per day.

Help for your insolvent retail business

If your retail outlet is experiencing difficulties, you should not delay seeking advice. Business owners need to address problems and if they put this off, then their options become more limited.

Company Debt provides expert support and advice on the next steps for an insolvent business, whether rescue, recovery or liquidation.

Knowledge – Insight – Solutions

We are fully licensed and accredited insolvency practitioners based in north London, and with decades of combined partner experience in helping directors find positive solutions to business challenges.

Our goal is first to understand your situation as fully as we can, and then to explain the range of options available to you.

We focus on practical advice, without jargon. We practice total transparency around costs and fee structures. Our wish is to support you as fully as possible so that you can emerge from this situation in the best possible situation.

As a first step, simply book in a call with one of our team to learn more about our approach, and to take advantage of a fee consultation that carries no obligation.

Book My Consultation

If you need an experienced insolvency practitioner or business rescue specialist, seek advice now.

Your free consultation will be led by one of our experienced London insolvency practitioners
You can speak via phone, online meeting or in person so that we can listen carefully to the facts about your situation
The team will provide a preliminary view of the likely best outcome, proposed strategy, and the likely cost
We specialise in helping limited company directors needing immediate professional debt advice