More retailers poised for failure
Published: 04 January, 2012
New research forecasts more retailer failures after La Senza, Hawkins Bazaar, D2 Jeans and Past Times announced store closures before Christmas
According to Company Watch, the corporate health monitoring specialists, it’s probable that some more well-known retailers will struggle to get through 2012, as battle fatigue finally claims weary retailers who have been beset by stronger online competitors and bargain-hungry shoppers.
Using the latest published financial statements and other public domain data for a number of well-known retail groups, the researchers highlighted Thorntons, Dixons, HMV, Clinton Cards and Blacks Leisure as the most vulnerable.
Nick Hood, head of external affairs at Company Watch, said: “With so many negative pressures bearing down on consumer spending and the peak Christmas trading season now behind them, it is difficult to see how the more financially-fragile retailers will make it through the barren retail winter.
“Their bankers, suppliers, landlords and the trade insurers will all be focussing on which companies to support and how to mitigate their potential losses on the less fortunate retailers. Although the vast majority of retailers going under will be SMEs, we can expect further casualties among the high profile companies trading on public equity markets.”
