The number of retailers buckling under economic pressure has hit a five year high as consumers remain cautious amid the cost-of-living crisis.
Insolvencies in the sector are up 19% to 2,195 in the year to January 31, up from 1,843, according to figures from Mazars.
The accountancy firm reported that ecommerce insolvencies had surged 18% to 615, up from 521 reported in the previous year.
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Mazars partner Rebecca Dacre said: “We are unlikely to see the retail sector trading comfortably until interest rates start to fall.”
“Despite inflationary pressures easing, high interest rates and low consumer spending continue to persist.”
She added that the National Living Wage increase and a “sharp rise” in business rates would place further pressure on businesses.
Wilko was one of the biggest collapses of 2023, after ongoing cash struggles and high interest rates pushed it over the edge.
Despite an active bidding war for the discount chain, its assets were eventually divided up with The Range taking on its brand and website for £5m, Poundland agreeing to take on 71 store leases and B&M snapping up 51 stores in a £13m deal.
Last week, Frasers Group relaunched Wiggle.com and Chain Reaction after acquiring the brands out of administration in March following their collapse back in October.
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