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Scottish shops at risk of failure

Category: Scotland Business News — Mark on July 22, 2012

A report by the trade body for insolvency practitioners has warned that over a quarter of all shops in Scotland face going bust in the next year.

The warning comes from R3, The Association of Business Recovery Professionals.

Its report says that 274 retailers in the country are presently facing a ‘high risk’ of failure, with a further 1,238 businesses being ‘vulnerable to failure’.

This means that more than a quarter of retailers are at risk of going to the wall by spring 2013.

Announcing the findings, Iain Fraser, a spokesman for R3 said the results would be unlikely to surprise many retail professionals:

“Retail, as has been widely reported, is suffering both from a lack of consumer confidence coupled with systemic changes to the way in which people buy products.”

Fraser went on to say that changing purchasing habits and the challenging economy are continuing to drag the sector down. He also warned that the troubles could have some way to run:

“There remains some way to go before the economy recovers and, until that time, retailers offering niche or non-essential products will face troubling times.”

It does however potentially leave the door open for acquisition and market share increase opportunities to be exploited.

Indeed, Scottish factoring companies are helping retailers move forward in this way by boosting their working capital quickly.

However, with R3 reporting that 26.15 per cent of all Scottish retailers could be set to disappear in just a year, the typical high street in the country could start to look dramatically different.

'Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

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