// The high street this year faced less administrations compared with 2018
// CVAs increased as retailers battled increased business rents and rates
Retail administrations in the UK have declined by 30 per cent this year despite several retailers facing increased pressure, new research has found.
The number of retailers which fell into administration over the past year to November was less than in 2018, according to data from KPMG.
However, CVAs significantly increased during the year as retailers were faced with increased rents and business rates.
KPMG added that large numbers of retailers announced major store closures this year, but there was a reduction in the number of businesses having to close their entire store portfolio and fold.
Some of the most notable retailers to collapse this year includes LK Bennett, which announced its administration in March and closed 21 stores, and Debenhams which collapsed the following month. US retailer Forever 21 closed 350 stores globally after filing for Chapter 11 bankruptcy protection in September, while Bonmarche put 2900 jobs at risk in October after filing for administration.
Meanwhile, gift and cards retailer Clintons attempted to push through restructuring proposals to avoid administration but was forced into insolvency after failing to gain backing from creditors.
Moreover, Sir Philip Green’s Arcadia closed stores through CVA procedures, secured rent reductions on other sites and avoided collapse.
Pressure from online retailers and high costs resulted in 81 retail administrations in the 11 months to November, down from 116 a year earlier.