Administration Watch | Q2 2013
Administrations continue as retailing environment shows signs of improvement
After a devastating start to the year, the retail environment in the UK showed some signs of improvement in the second quarter as better jobs figures and signs of stabilisation in the global economy helped to boost consumer confidence and spending. It it too early at this point to say whether UK retail has turned a corner but the signs are encouraging.
Despite this improvement, retail administrations continued to weigh upon the high street during the second quarter of the year. A relative lull in April and May was broken by a wave of major administrations in June, with the likes of Internacionale, Ark and ModelZone falling into administration.
As ever administrations have led to store closures and job losses, although not in all case. For example, Internacionale was sold as a pre-pack in July.
The number of jobs directly lost as a result of major retail administrations in the quarter is estimated to have been 1,050 jobs with around 150 store closures. These figures were well down on the first quarter.
So far this year, major high street retail administrations have cost around 8,500 jobs and led to 860 store closures.