Retail sector sees major drop in administrations

Deloitte predicts less "high profile retail casualties" in 2014

Shoppers on Northumberland Street in Newcastle
Shoppers on Northumberland Street in Newcastle

The number of retailers in the North East and Yorkshire falling into administration dropped by nearly 19% in 2013, according to new figures.

Research from business advisory firm Deloitte shows 248 companies entered administration during the year, compared with 305 in 2012.

Nationally, the decrease was 6%–- although the last three months of the year saw an 11% increase compared to the fourth quarter of 2012.

Dan Butters, restructuring services partner at Deloitte in the North East, said: “The high street has undergone a re-balancing, and this is what is being reflected by these figures. A year ago we were about to see HMV, Blockbuster and Jessops enter administration, but I would not expect as many high-profile retail casualties this time round.”

He added, however, that it was essential retailers addressed the “fundamental issues affecting the industry” and that 2014 was likely to be “marked by further closure programmes”.

“What’s most notable is the decline of administrations in the property and construction industry,” he said. “This is a significant reduction, and reflects the recovering health of the sector. This drop has, unsurprisingly, had a positive knock-on effect for the hospitality and leisure sector.”

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