20 chain-store shops closing a day

Savannah Selle
July 08, 2011

Chain-store shops have been closing at a rate of about 20 a day during 2011, new research reveals.

New research published by the Local Data Company on Friday shows that approximately 4,000 chain-store shops have shut in the first five months of the year putting more than 4,000 jobs at risk.

The latest figures from accountancy firm PricewaterhouseCoopers (PwC) show a total of 375 retailers went bust in the second quarter of 2011, a 9% increase on the same period last year.

This statistics have been brought to light after the Liverpool based chain TJ Hughes went into administration last week introducing closing down sales at 57 of their department stores.

Ernst & Young, the administrators of TJ Hughes said they were encouraged by the level of interest and talks were being held with more than 30 prospective buyers but analysts have suggested that the chain would be broken up and shops will be auctioned.

Tom Jack of Ernst & Young said it was vital they sell the mountain of unsold stock that is sitting in their storerooms in case a buyer failed to materialise.

Focus DIY, Habitat and Jane Norman are among the high street chains to have failed in the last two month and PwC said analysis of recent high-profile retail failures suggested that half of a group’s stores would close as a result.

Stephen Robertson, director general of the British Retail Consortium (BRC) said:

“High streets are at the heart of local communities and economies, providing jobs and essential services, but some are in trouble. These figures are further evidence of the tough trading conditions being experienced by non-food retailers in particular. The government’s review of the high street must result in urgent action.”

“Practical steps are needed to protect and promote our high streets so they remain attractive locations where businesses of all kinds can thrive. This cannot be left to chance.”

“The priority must be protecting that growth and helping it spread to all parts of the country, boosting town centres and creating jobs.”

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