The high street has suffered in the economic downturn

The high street has suffered in the economic downturn

The number of retailers falling into administration in 2011 was an 11% increase on the figure from 2010.

According to research by consultancy firm Deloitte, 183 businesses fell into administration in 2011, compared to 165 in the previous year.

In the last quarter of the year, which included the Christmas period, the figure still increased by 27% on the previous quarter, with 42 retailers falling into administration.

The most recent of retailers to go into administration are underwear giant La Senza and outdoor clothing shop Blacks Leisure.

Lee Manning, restructuring services parter at Deloitte, said the trend is set to continue into 2012. He said: "Many retailers would have been banking on the 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 severe pressure on margins."

He also said what stands out in 2011 is the significant increase in household names, with Barratts, Oddbins, Jane Norman, TJ Hughes, Habitat and Homeform all being defeated by the economic climate.

Mr Manning said: "Collectively, the plight of these companies shows the depth of the impact of the consumer recession, with more casualties anticipated as the year goes on."

Retail shops have blamed challenging trading conditions and cashflow difficulties as just some of the reasons for their closure.

HMV is the latest high street retailer to report a fall in sales over the festive period.

 

Alexandra Baracskai