Business Rescue Service speak their concern regarding the slump of high street sales and the high amount of retail business entering liquidation.
(1888PressRelease) May 07, 2011 - The Business Rescue Service spoke out today about concerns around declining high streets sales whilst high street chain Oddbins entered administration this month. Reports from major retailers across diverse sectors demonstrate a marked sales slump for the first quarter of the year.
Oddbins chain of wine shops was one of the latest casualties, with the Financial Times confirming in early April that it had gone into administration. 400 jobs were reported to be at risk as a consequence. Elsewhere, major high street retail chains were reporting a decline in sales. Some retailers placed the figure as high as an 11% drop compared to the same period a year before. Many have also been reported as trading 'in the red', with falling share prices reflecting their decline. The Business Rescue Service gave their reaction:
"Retail is a sector that is under close scrutiny right now. We have had a number of years which saw some very well-known businesses enter into liquidation or administration. Our advice for directors is to seek our support as early as possible, even before any problems have developed. The economy is still presenting challenges to some sectors. While there are some companies doing very well indeed, we know there are plenty who could certainly benefit from expert advice".
Statistics for company insolvency released by the government's Insolvency Service show that during the final quarter of 2010, over 5,000 UK firms declared insolvency in England and Wales alone. This was predominantly composed of liquidations (3,995 including creditors' voluntary liquidations). There were also 170 company voluntary arrangements; 642 administrations and 302 receiverships. Northern Ireland saw 382 companies enter liquidation during the same period. Scottish figures have not yet been released. The latest available statistics show by the close of the previous quarter, 320 companies entered liquidation and 5 more entered receivership. Economists are describing current consumer confidence as particularly fragile with rising inflation affecting spending behaviour. The level of household income is believed to have recently fallen due to wages lagging behind inflation, the first such fall for 30 years.
"Our team are dealing with both incorporated businesses and sole traders right now who are certainly under financial pressure. There could be a multitude of problems. We sometimes intervene with their creditors, aiming to signal the business is one hundred per cent focused on tackling its financial problems. If creditors will allow more time to pay, this can be the vital breathing space the business needs. There could be tax arrears, which we specialise in, having had years of experience dealing with cases where arrears were becoming a very serious problem. Some companies can use a company voluntary arrangement to allow them to continue trading to resolve the problems. Other firms have needed to enter a formal winding up phase and we still support them to gain the best possible position they can".
Any director or manager with concerns about possible or impending company insolvency can gain initial advice from the team in confidence and without obligation. They can be contacted by phone on 0845 468 2395 or online at http://www.businessrescueservice.co.uk/
Business Rescue Service speak their concern regarding the slump of high street sales and the high amount of retail business entering liquidation. 
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