Insolvency expert predicts tough period for retailers
The build up to Christmas could be marked by a series of business failures in the retail sector, according to an insolvency expert.
Retailers have experienced a tough 18 months, with the sector one of the hardest hit by the recession.
Chains such as Zavvi and Woolworths, together with scores of smaller retailers, were unable to survive the downturn and many others saw their profits slump.
The weeks before Christmas are traditionally seen as a good time for shops as consumers splash out on presents, but Phil Duffy of restructuring specialist MCR told the Independent the reality can be very different.
He explained that many retailers would have to make VAT payments and settle invoices from overseas suppliers before Christmas, which could push some of them towards insolvency.
“I imagine there will be more retail failures before Christmas. I think it is going to be fairly difficult,” said Mr Duffy.
His prediction comes after a welcome piece of good news for the sector, as the British Retail Consortium-KPMG Retail Sales Monitor revealed sales figures for September 2009 were 2.8 per cent up on the statistics for the corresponding period last year.
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