KPMG reports 5% rise in administrations

821
KPMG reports 5% rise in administrations
Administrations rose over 1,400 for 2019.
// KPMG reports rise in administrations to over 1,400 in 2019
// 420 firms fell into insolvency in the third quarter alone
// Figures come as retailers face delay in business rates relief due to government computer glitch affecting 75 local authorities

The number of firms falling into administration across England and Wales rose nearly five per cent to more than 1,400 in 2019.

Accountancy firm KPMG tallied the number of insolvency notices posted in the London Gazette, revealing 1,403 companies went into administration in 2019, up from 1,341 the year before.


READ MORE: Retailers face business rates relief delay due to computer glitch


Those insolvencies don’t include high-profile corporate collapses such as that of Thomas Cook, which went straight into liquidation.

KPMG noticed a rise in the rate of insolvencies in the third quarter of 2019, when 420 firms fell into administration, including Jack Wills and Karen Millen.

The results come as analysts wait for the government’s annual total to be published.

“2019 was a year characterised by profound political and economic uncertainty, with consumer confidence remaining fragile and companies continuing to bear the brunt of rising overheads and increased costs,” said KPMG UK head of restructuring Blair Nimmo.

“While many battened down the financial hatches, adopting a prudent and cautious strategy, for some, the challenging trading conditions proved to be a bridge too far,” Nimmo added.

The government has long been under pressure to ease the challenges facing retailers by reducing business rates.

Last week it was revealed that hundreds of retailers that were expecting to receive some relief on their business rates bills will now face a delay due to a glitch with some councils’ computer systems.

According to The Times, 75 local authorities have been told by their software provider that changes to bills cannot be made until after the new financial year.

Changes to business rates reliefs that the government wants to make from April 1, for the financial year 2020/21, will not be introduced in time by some councils.

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