Thousands of clothing retailers being “buffeted hard” face insolvency

573
Insolvency

Thousands of clothing retailers are thought to be at risk of falling into insolvency, as they are expected to take a major hit from both Brexit and the business rates reforms.

According to accountancy firm Moore Stephens, nearly a fifth of all clothing retailers totaling around 5538 are showing warning signs.

The firm, which analysed 30,940 businesses, said the rise in minimum wages alongside rising business rates, increased online competition and the fallen value of the pound have put retailers at risk of collapse.

READ MORE: Fashion’s “worrying downward spiral” pulls down high street sales in May

“Clothing retailers are being buffeted hard on many fronts,” Moore Stephens’ head of insolvency Jeremy Willmont said.

“Rising costs and intensifying competition are putting pressure on revenue and making profit margins harder to maintain.

“Sterling’s post-Brexit performance could have a chilling effect on discretionary spending on ‘fast fashion’ imported from overseas supply chains.’’

Click here to sign up to Retail Gazette’s free daily email newsletter

LEAVE A REPLY

Please enter your comment!
Please enter your name here