There has been a rise of 31% in the number of fashion retailers going bust so far this year, new figures have revealed.
A total of 134 fashion and textile companies have become insolvent since the start of 2012, figures published today by PwC have shown. This compares with 102 over the same period in 2011.
The bulk of these took place in the first three months of 2012, with 93 companies in the sector going bust.
The figures reveal that the fashion industry is suffering almost twice as much as the wider retailing industry, with a 16% rise in the number of firms going out of business being recorded across the board. Year-on-year the increase for Q2 alone was 10.3%.
PwC said the data suggested retail was “significantly worse off than this time last year”, with data showing some improvement in other sectors. In fact, there has been a decrease of 3% in the number of insolvencies during Q2 of 2012 compared with the same period last year.
Mike Jervis, PwC business recovery partner and retail specialist, said: “There has been a clear reduction in the incidence of insolvencies over the current recession compared to previous ones.
“Retail is the sector which keeps bucking this trend. In fact, quarter on quarter retail insolvencies have increased for every one of the last four quarters.
“Other sectors showing this trend, such as construction and hospitality and leisure, have had fewer insolvencies during the second quarter of 2012 than the same period last year.”