Today’s company insolvency statistics show wholesale and retail trade insolvencies increased 27 per cent in April 2024 (from 280 in March 2024 to 355 in April 2024) and were up 30 per cent on April 2023 (274).
Gordon Thomson, restructuring partner, RSM UK, commented: “The tough trading environment for the retail sector continues to drag on, resulting in an increase in insolvencies in April. As retailers grapple with high costs, lacklustre consumer demand and too many April showers, they were also hit with an increase in national minimum wage which may have been the final straw for some.
“However, with inflation easing, real wages growing, and interest rates set to come down, this bodes well for consumer confidence and sets the stage for an increase in consumer spending in the second half of the year. For those retailers that have managed to weather the storm thus far, there’s light at the end of the tunnel.
“We expect the current high levels of distress to decline later this year as retail sales improve. That said, retailers will be looking to the next government to ease the current headwinds faced by the industry, including reform of business rates and a U-turn on tax-free shopping.”
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