Michele Maatouk Sharecast News
27 Dec, 2024 09:28

More retailers in 'critical financial distress'

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Shops in south LondonSharecast photo / Josh White

The number of UK retailers facing "critical" financial problems rose more than 25% in the last three months, according to data released earlier by restructuring firm Begbies Traynor.

Begbies said there were 2,124 retailers in "critical financial distress" between October and 16 December, up from 1,696 between July and September. Still, this was a little lower than the 2,142 reported in the last quarter of 2023.

Begbies put the increase down to subdued consumer confidence and rising costs.

Julie Palmer, a partner at Begbies Traynor, said: "This year has highlighted the resilience and adaptability of some UK retailers, but the sector remains under significant strain.

"Clearly, some retailers have found ways to manage financial pressures effectively, but others, particularly in general retail, are struggling under the weight of rising operational costs and squeezed consumer spending."

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