11% hike in number of retailers in administration
The total number of retailers in England and Wales falling into administration in 2011 increased by 11% last year, research published today revealed.
Some 183 retailers fell into administration in 2011, compared to 165 in 2010, professional services firm Deloitte said.
In the final quarter of the year, the number of administrations increased by 37% to 42 compared to the previous quarter, Deloitte added.
The rise in companies entering administration comes amid a crippling consumer spending squeeze, driven by higher prices, slow wage growth and low confidence.
Lee Manning, restructuring services partner at Deloitte, warned the trend was set to continue into 2012, with Blacks Leisure and La Senza already confirming they will appoint administrators.
He said: "Many retailers would have been banking on a busy Christmas period to give them a much needed sales uplift, but retailers were forced into discounting at levels last seen in the aftermath of the collapse of Lehman Brothers, putting pressure on margins."
Mr Manning said a further spike in administrations in the first quarter of 2012 was likely as retailers buckle under the pressure of VAT payments and impending rent payments.