House of pain – administrations and store closures blight the high street
Multiple retailers have fallen into administration or been forced to announce they are closing stores since the start of the year.
House of Fraser is the latest retailer to collapse into administration, and it comes amid extreme turmoil on the high street.
Since the beginning of the year, multiple retailers have gone bust or announced store closure plans.
– House of Fraser
The department store has fallen into administration, endangering the future of 17,000 staff. But parts of the business could still be rescued, most likely through a pre-pack administration process, where a new buyer cherry-picks the best assets.
The DIY chain is set to close 80 stores, hitting up to 2,000 jobs. It follows a botched takeover by Australia’s Wesfarmers.
Called in administrators in June in a move affecting 5,100 jobs. The business was hit by falling footfall, alongside rising costs and weak consumer confidence. All stores have now been closed.
– Toys R Us
The toy chain went into administration on the last day of February after failing to find a third-party buyer. It came after HMRC sought to recover £15 million in unpaid VAT and this finally tipped the company into administration.
One of the UK’s biggest electronics retailers collapsed into administration on the same day as Toys R Us after talks with buyers failed to secure a sale. The business faced the slump in the pound after the Brexit vote, weak consumer confidence and a withdrawal of credit insurance.
The ailing baby goods and maternity retailer is to close 50-60 stores as part of a planned turnaround.
The embattled flooring firm is embarking on a store closure programme, also part of a restructuring, after announcing heavy losses.
The upmarket deli chain has unveiled a restructuring plan that is likely to lead to 34 restaurant closures as it cited a combination of a decline in consumer spending and increased competition, coupled with rising costs of labour, raw materials, rent and business rates.
Other restaurants that have undertaken company voluntary arrangements so far this year include Byron, Prezzo and Jamie’s Italian.
– New Look
The clothing chain announced earlier this year that it would close 60 UK stores and cut 1,000 jobs as part of a financial restructuring.
– Conviviality Retailing
The major drinks and off-licence supplier, which owns Wine Rack and Bargain Booze, went into administration in early April. The company had grown too quickly by merger, there were a series of profit warnings and a £30 million tax bill for which Conviviality was forced to ask for extra funds from investors – who refused.
– Warren Evans
The bed, mattress and furniture retailer in London and the South East went into administration one week after putting itself up for sale. The company, known for its ethical stance, had been losing money for some time under the pressure of rising costs and shrinking customer spending.
The owner of Jacques Vert, Windsmoor, Dash and Eastex fashion brands, which ran about 300 UK concessions in stores including Debenhams and House of Fraser, went into administration at the start of May. Bosses said inflation and wage freezes had been a driving force behind decreased spending.
– Juice Corporation
The firm behind fashion brand Joe Bloggs and the retailer that designed the wedding dress for Diana, Princess of Wales, collapsed into administration in January. Although the group made profits, it had failed to make inroads into the fashion market.