Business

Fewer retailers fall into administration

THE number of retailers going into administration during 2013 fell by 6 per cent overall compared to the year before, although there was a marked upturn during the final quarter of the year.

Research from business advisory firm Deloitte found that 183 retailers entered administration over the last 12 months compared with 194 in 2012.

High street firms were thought to be benefiting from being left standing after the collapse of rivals.

But the last three months of the year saw an increase of 11 per cent compared to the previous fourth quarter - from 37 to 41.

Lee Manning, restructuring services partner at Deloitte, said: "The high street has undergone a rebalancing 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.

"This does not mean demand is increasing, more that the clearout will benefit those still standing in 2014."

In total 1,629 businesses went into administration in 2013, 11 per cent down from the figure of 1,833 seen the previous year.

Almost all sectors tracked in the analysis saw a decline in the number of business failures - including a 24 per cent fall in property and construction and a 4 per cent decrease among manufacturing firms.

The healthcare and social services sector saw an increase of 7 per cent from 42 to 45, the analysis found.