The number of retailers buckling under economic pressure has hit a new record as shoppers pull back on spending amid the cost-of-living crisis.
Insolvencies in the sector surged 56% in the past year, the highest level in nearly a decade, according to figures from law firm RPC.
Around 1,942 retailers went bust in 2022-23, up from 1,243 in 2021-22, beating pandemic levels when several retailers crumbled from the closure of the high street.
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RPC head of restructuring and insolvency practice Finella Fogarty said: “Challenging economic conditions over the past year have had the impact of forcing struggling retailers into insolvency.”
“Despite the challenges faced by the sector, the insolvency of financially weaker retail businesses is creating opportunities for stronger players.
“These businesses may be able to increase their market share through strategic acquisitions of smaller competitors.”
Tesco snapped up the brand and related intellectual property of Paperchase in a pre-pack deal at the start of the year, after it was put up for sale for the second time.
All 106 of its stores have now closed and Paperchase products will now be sold on the supermarket’s website and in store.
Similarly, Next acquired the brand name, domain names and IP of Cath Kidston in an £8.5m pre-pack deal back in March.
The struggling retailer was the latest to join the Next fold, following Joules and Made.com.
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