Clothing and footwear retail insolvencies rose sharply in the first quarter of 2009 according to data from PricewaterhouseCoopers (PwC).
During the first quarter of 2009, 116 retailers in the clothing, textile and footwear industry entered insolvency, against the first quarter of 2008 when 74 retailers collapsed.
Andrew Garbutt, retail director at PwC said: “In 2008 we saw relatively weak retailers going to the wall. However survival of the fittest will be the mantra for 2009 - those with an inappropriate capital structure or poor proposition will struggle to survive. Even good companies may disappear as they are exposed by low sales volumes and debt burdens.”
Total retail sector insolvencies in the first quarter of 2009 increased by almost a quarter compared to the fourth quarter in 2008, peaking at seven retailers going out of business every day, according to PwC.