Fri, 27 Dec 2013 | BUSINESS NEWS
Research conducted by Begbies Traynor has predicted that about 150 British retailers are heading towards severe cash difficulties, while hordes of shoppers hit the shops to bag some bargains in the traditional after Christmas sale.
While the economy has brightened up this year, the number of companies facing trouble has risen by 8 per cent from the fourth quarter of 2012, with a 15 per cent uptick for retailers facing calamity to 15,792. Distressed business buyers will take note of this and keep watch for the potential deals available in the coming weeks.
Begbies Traynor says that retailers who don’t have a strong online presence, high customer retention and satisfaction are particularly at risk. Traditional retailers who trade from a premises are also vulnerable to increased fixed costs from business rates and rents.
The study found that those most at risk of failing were second hand stores and market stalls (up 28 per cent), food, drink and tobacco sellers (up 20 per cent), followed closely by electrical products shops (up 16 per cent) and clothing and shoes retailers (up 12 per cent).
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