Retail administrations declined in 2013

Despite the rush of headlines suggesting otherwise, the number of retail businesses entering administration actually declined over the course of 2013.

Figures from Deloitte showed a six per cent decline over the course of the year. A total of 183 retailers entered administration during the 12 month period, down from the 194 recorded in 2012.

However, the final three months of the year suggest that the sector is still not out of the woods, with an 11 per cent increase on the final quarter of 2012 recorded. Thirty-seven administrations were recorded in comparison to the 41 shown in the same period in 2012.

Lee Manning, restructuring services partner with Deloitte, commented on the figures: "The high street has undergone a re-balancing, 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 clear-out will benefit those still standing in 2014."

It wasn't just retail that showed a change in administration numbers. In total 1,629 businesses across the UK became insolvent, an 11 per cent reduction on the 1,833 seen in 2012. Property and construction saw a particularly strong decline, with a 24 per cent drop in the number of administrations. However, not all sectors saw a decline, with healthcare and social services recording a seven per cent increase from 42 to 45.

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