Failure not the reason many high street stores have shut up shop!

Published: 05/01/2023 By Hannah McCormack

The high street today looks very different to that 5 years ago, with just over 17,000 stores closing in 2022 alone, an increase of over 50% compared to that in 2021 (11,449 closures) it’s no longer the bustling place we saw pre pandemic. According to a study by the Centre for Retail Research (CRR) it found that approximately 47 shops shut everyday in 2022 but it may surprise you the reason for all these closures.

CRR report that only a third of all closures were due to insolvency i.e. the failure of a company,  with the rest closing due to restructuring i.e. larger chains closing smaller stores to help save money. Reducing costs and overheads in the current “cost of living crisis” climate is imperative for any business to survive. Without the help of the pandemic government support and furlough schemes many businesses including retail and hospitality are now facing tough times; due to shoppers reigning in their spending as well as soaring running costs and wage bills.

CRR director Joshua Bamfield said “Rather than company failure, rationalisation now seems to be the main driver for closures as retailers continue to reduce their cost base at pace"

At turpin barker armstrong we are turnaround specialists, meaning we look at all the options available to your business when things are tight. Rather than only offering a terminal insolvency procedure we try to provide alternatives that you may not have thought of. However, the sooner you seek advice regarding saving money and restructuring your business the more options are usually available. We offer a free no obligation meeting at a time to suit you where we can go over a restructuring plan for your business. Many directors we talk to say they wish they had spoken to us sooner as it would have saved them a lot of sleepless nights!

Get it touch today – call 020 8661 7878 – email insolvency@turpinba.co.uk  – fill out our contact form