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Rent quarter day could bring further administrations

Vulnerable retailers could suffer from rent payments due today with predictions of a further 30 administrations this year.

Today’s rent quarter day could cause problems in the retail sector said Nick Hood, business risk analyst at financial research firm Company Watch.

Hood said: “Heavy rent payments that which fell due today will be focusing the minds of lenders and other stakeholders in the more vulnerable retailers at this quiet time of reduced cash flows between Christmas peaks.

“There was a significant crop of failures this time both last year and the year before,” he added. “There have already been 32 major retail failures this year and the total for 2013 could easily hit 60, although most will be mid-size chains rather than mega failures.

“This is no time to be a heavily indebted retailer with a vulnerable balance sheet and a sub-standard multi-channel offering.”

This year there has already been several high profile fashion retailers succumbing to economic pressures.

Young fashion chain Republic collapsed into administration in February after suffering poor trading figures. The retailer was later bought by Mike Ashley-owned Sports Direct.

York-based independent Coggles also entered administration last month, after talks to secure investment fell through. It has since been bought out by etailer the Hut Group.

 

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