There is absolutely no doubt about it - 2013 is going to be a long hard slog. Victoria Gallagher looks at the potential for further decimation on the high street in the coming weeks.
Spring could be set for a further slew of failures, particularly as this week’s chilly temperatures will not help shift spring 13 stock now piled high on the shopfloor.
Retailers could be left short on cash as landlords come knocking on their doors on March 25 for the latest instalment of rent. That particular bill is likely to spell disaster for some retailers.
Financial risk firm Company Watch has predicted that another seven retailers will go bust in the next month or so, because of the pressure of March rent day.
As Nick Hood, head of external affairs at Company Watch, told Drapers “historically the rent quarter day in March has been a tough one”.
Companies with a lot of debt could be hit the hardest, and there are several of those in the British high street. Some, like All Saints, have been excerbated by situations outside their control like the fallout from the Icelandic banks, while others, like New Look, have been affected by their own internal problems.
After an icy start to the year many companies’ cash flows will have been left decidedly frosty meaning that businesses have little room to manoeuver. Many will be praying for the sun to come out over Easter in order to warm up sales and keep the future bright for British retail.