Administration filings tumble despite major retail insolvencies
The number of firms falling into administration fell dramatically in the second quarter of the year, despite a series of high profile insolvencies hitting the headlines in recent months.
A total 302 companies entered administration in the three months from April to June, marking a 13 per cent fall from the previous quarter.
However, the figure was a slight increase on the 297 administrations that took place during the second quarter of 2017.
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The research, carried out by KPMG for the London Gazette, comes despite a recent swathe of retail giants filing for administrations amid rising costs and growing competition.
Earlier this month House of Fraser called in administrators after failing to reach a deal with creditors, having already earmarked 31 of its 59 stores for closure.
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Blair Nimmo, head of UK restructuring for KPMG, said: "The drop in the number of administrations may come as a surprise to many who have followed the tribulations of certain well-known high street brands. Nevertheless, when put in the context of year-on-year trends, the latest stats still represent relatively normal attrition rates.
`"Of course, we continue to see companies in the casual dining and retail spaces battle hard in the face of changing consumer attitudes towards spending, coupled with increased costs as a result of the living wage and business rates pressures. Whilst a number of chains have survived through the implementation of successful CVAs or via pre-pack administrations, inevitably there have been site closures and job losses across many parts of the country."
Nimmo concluded: "Overall, however, the latest figures reflect a relatively positive picture for most businesses. For the most part, adopting a long-term cautious approach appears to be paying off for the majority of firms, although sectoral-specific challenges and broader global economic changes will inevitably force some businesses to reconsider their operations and potentially restructure their organisations to improve efficiencies."