Retail Sector Insolvencies on the Rise

The number of retail sector failures has risen by more than a third recently.

Around 670 retailers went bust during the first quarter of 201 which is a 38% rise against the 486 that became insolvent during the last quarter of 2011.

This is a 3% increase on the number if businesses that failed during the same period last year, confirming that this year is in fact worse for insolvency figures.

The retail sector has been struggling to get back on its feet since the first recession that began in 2008. Since this period the UK has slipped back into a double-dip-recession and has forced many business to consider voluntary insolvency solutions such as liquidation or company voluntary arrangements.

Many are blaming the double-dip-recession for pulling the retail sector back down into insolvency.

Jameson Smith & Co help UK directors to get out of tricky insolvency situations. We speak with directors every day so get in touch if you need help with your company.

You can get in touch on 08000 746 757 or use our live chat facility at the top of the page.

How Will I Pay My Rent?

1^st of July is just around the corner.  For a majority of businesses, this signals that the next quarter rent will fall due. 

At a time of austerity measures and dwindling turnover, a huge bill, however expected, is increasingly becoming a challenge to business.  The problem becomes greater for small businesses fighting for survival.  Many a times have we seen businesses falling short of the rent demand having to come into arrangements with landlords just to keep in business and a place to trade.  When the pressures become too much, these businesses were often pushed into either voluntary insolvency or compulsory insolvency and consider outcomes such as liquidation.

When faced with a large rent demand, businesses should immediately assess their financial opposition and decide their ability to continue.  If they cannot deal with these issues themselves, financial advisors such as ourselves may be able to help.  We have dealt with landlords in various issues and the outcome we seek focus on a beneficial outcome for all parties. 

Teesdale has largest increase of personal insolvency

Statistics show that Teesdale had the largest year-on-year increase of individual insolvency this year.

According to the Insolvency Service their research indicated that the reason behind the increase in both forced and voluntary insolvency was due to the knock-on effects of the recession. Even the Citizens advice bureau noted an increase of personal insolvency enquiries coming from the Teesdale area.

The types of insolvency cases have ranged from bankruptcies, debt relief orders and individual voluntary arrangements have all risen over the recent years for the Teesdale area.

According to the Citizens Advice Bureau they expect a further 65% increase on top of the current figures if the trend carries on.

So how can we avoid insolvency? For some the answer may be that it is inevitable, however, with careful forward planning through the use of a personal cash-flow to work out your outgoings and what you have coming in you can put the odds in your favour.

If insolvency is inevitable and it is too late to consider other options then you will want to make sure that you choose a firm that can represent you well and provide you with expert advice to help you get out of the situation as soon as you can. The Citizens Advice Bureau is a fantastic place to start as they provide free advice like ourselves. Although we focus on helping directors and business insolvency, we can always help point you in the right direction and we won't charge you for the time.