PRESS RELEASE
Release date: 12th
September 2013
Retailers warned to seek help before shutting
up shop
Retailers must take action immediately if they are
struggling to meet their quarterly rent demands, warns Midlands-based corporate
recovery and insolvency experts Cranfield Business Recovery.
As landlords throughout the UK prepare to issue their
three-month advance rental demands to shops and businesses, Cranfield is
reminding retailers of figures recently released by insolvency body R3, which
state 134,000 businesses nationally are struggling to pay their bills on the
time. This figure is 24,000 greater than the figure recorded this time last
year.
With rent due to be paid on September 25, Cranfield is
urging struggling retailers to seek help before they are forced to shut up
shop.
Brett Barton, Director at Cranfield Business Recovery
explained: “Together with business rates,
rent is undoubtedly one of the largest bills that retailers have to pay so this
month could be very difficult for them. With the rise of online shopping,
retailers have borne the brunt of the recession so if they are beginning to
struggle financially, now is the time to seek professional advice.”
There has been a recent glimmer of hope among retailers in
the UK, with the British Retail Consortium reporting that sales were up 3.6% in
August 2013, compared with a 1.6% increase in the same month the previous year.
Despite this, a report from the Local Data Company earlier this month states
that one in seven shops are lying empty in UK high streets and there is a clear
North/South divide with high streets in the north, Midlands and Wales being the
worst hit. This report is reflective of figures in many regions.
Coventry City Council, which is just one regional landlord
in the Midlands, states that Coventry had 58 void shops in July 2013, which
equates to about 15% of stores. This is worryingly higher than the national
average of 11.9% and the highest recorded in the city since January-March 2010.
With Christmas round the corner, this could be make or break
time for retailers in the UK. Those struggling to meet payment demands need to
seek professional advice now to ensure they are still in business by the time
December arrives.
Brett Barton advises that some landlords, particularly those
who have smaller amount of stock for rent, are prepared to negotiate terms more
readily because they still have to pay full business rates if the premises are
empty. However, even if this is not the
case he stresses that there are still options to retailers.
“If the landlord
cannot or will not negotiate, there are still some things that a retailer can
do to help meet payment demands,” he said. “It could be a case of adopting a better cash flow management system
that is geared up specifically for retail businesses or aimed at reducing
losses.
“Adapting to the
changing habits of consumers has always been essential for survival and smaller
retailers might well have the advantage over larger stores because they can be
more nimble in introducing changes.”
- ENDS -
About Cranfield Business Recovery
Cranfield
Business Recovery is the number one insolvency practice in Coventry, employing
a total of 15 staff. Set up in November 2001 to offer a professional service to
individuals with corporate, business, and personal financial problems, they
work closely with professional advisors to assist their clients. Cranfield
offer a bespoke and sympathetic service in circumstances that are often
difficult and stressful.
For more information contact
John Edden,
Bridge PR & Media Services Tel: 024 76 520025, Email: john@bridgepr.co.uk
or
Tony Mitchell,
Cranfield Business Recovery, Tel: 024 7655 3700, Email: tony.mitchell@cranfieldbusinessrecovery.co.uk.