Home
Distressed Businesses
  • All Distressed Businessess
  • Administrations
  • Liquidations
  • Winding Up
  • Insolvency Advice  New
Buy a Business
  • All Businesses for Sale
  • Find a Business for Sale
  • Raising Business Finance
  • Buyer Acquisition Service   New
  • Escrow Service   New
Sell a Business
  • Sell Your Business
  • List your Business
  • Seller Accounts
  • Need Help Selling?
  • Help With Finance New
  • Corporate Services  New
  • Business Valuation
  • Business Wanted Adverts
Insights & News
  • View All News
  • View All Insights
  • Exclusive Insights New
  • Video Insights
Lens
  • Search all UK Companies  New
Log in
Join Now

Home / News / Almost 40,000 UK retailers in distress before tougher COVID-19 rules

Almost 40,000 UK retailers in distress before tougher COVID-19 rules

Tue, 22 Dec 2020 | BUSINESS NEWS

According to new research from insolvency specialist Begbies Traynor, close to 40,000 UK retailers were in “significant financial distress” prior to the government introducing tougher COVID-19 restrictions at the weekend, making widespread administrations and insolvencies likely. At the weekend, new restrictions Tier 4 meant that all non-essential shops had to shut their doors.

The research found that 39,232 UK retailers, across both brick-and-mortar stores and online, were experiencing severe financial distress in the three months up to December 9. While the majority of distressed businesses were high street retailers, close to 11,500 online retailers were also found to be in financial distress.

The figures mean that financial distress was up 11 per cent compared to the previous three-month period and was up 24 per cent on the same period a year earlier.

Begbies Traynor partner Julie Palmer commented: “Without doubt this has been one of the toughest years ever experienced in the retail sector. While many industries have been hit hard, retail, which was already suffering a crisis of confidence, has been shaken to its foundations.”

“High-profile administrations such as Arcadia Group and Debenhams not only threaten thousands of jobs, they also raise questions over the future of the high street as we know it, and I expect there to be more as we enter the new year.”

The research also reflected the huge impact of COVID-19 restrictions on the hospitality industry, with more than 7,500 hospitality businesses in severe distress, up 20 per cent from the previous three months and 34 per cent from the same period last year.

With new restrictions impacting businesses like pubs and restaurants during what is traditionally one of their busiest periods, further widespread administrations in this sector appear certain.

Julie Palmer said: “The hospitality sector has been brought to its knees by the COVID-19 restrictions, with many operators either having to shut or completely change their business models to suit differing tier-based restrictions.”

“The Christmas and new year period is a crucial revenue driver for these businesses, which is why we’re seeing such significant increases in the numbers in distress this year.”

“For the hospitality sector, hopefully the easing of restrictions will give consumers confidence to return to bars and restaurants, and book breaks in hotels and other accommodation. For retail, some major modernisations and strong leadership will be crucial to entice shoppers back. Even retailers that have proven resilient will need to keep innovating.”

An additional source of concern for UK businesses will be the ongoing uncertainty surrounding Brexit and the growing likelihood the UK will leave the EU on January 1 2021 without a trade deal in place. With ever-more stringent COVID-19 restrictions, Brexit’s impact on the UK’s trade and travel with the EU could prove a significant driver of further distress.


View the latest distressed UK businesses here.


Share this article



Latest Businesses for Sale

Civil Engineering & Environmental Consultancy
UK Wide

This business provides a full range of consultancy services to the construction and utility sectors. Civil Engineering & Environmental Consultancy in the Water Industry.

Asking Price: Offers Invited
Turnover: £2,500,000

LEASEHOLD


Supplier Of Portable Sanitaryware And Associated Components
West Midlands, UK

Provides a diverse range of sanitation products, including handwashing and sanitisation stations, alongside rotational moulding services and portable toilet and welfare facility hire.

Asking Price: Offers Invited
Turnover: £1,151,386

LEASEHOLD


Traditional Home Care Agency
Suffolk, East of England, UK

Traditional home care agency which has been trading successfully since 2010 when it was established by our client.

Asking Price: Offers Invited
Turnover: £674,927

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
09
 
Apr
 

Topshop flagship store up for sale | COMMERCIAL PROPERTY

Topshop's flagship Oxford Street store in London is dra...

 
09
 
Apr
 

Gestamp’s former Washington warehouse hits the market in £6.5m auction | COMMERCIAL PROPERTY

The former Washington base of international car parts manufa...

 
08
 
Apr
 

Decorating contractor targets acquisitions after MBO | MBO/MBI

Scottish commercial decorating contractor Bell Group has com...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
09
 
Apr
 

Gestamp’s former Washington warehouse hits the market in £6.5m auction | COMMERCIAL PROPERTY

The former Washington base of international car parts manufa...

 
09
 
Apr
 

Topshop flagship store up for sale | COMMERCIAL PROPERTY

Topshop's flagship Oxford Street store in London is dra...

 
08
 
Apr
 

Decorating contractor targets acquisitions after MBO | MBO/MBI

Scottish commercial decorating contractor Bell Group has com...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources

Become a Member

News Categories

  • - Business Sale
  • - Division Sale
  • - Administration
  • - MBO/MBI
  • - Merger
  • - Commercial Property

View all news


About Us

Business Sale Report is the UK's leading independent business for sale & distressed business listing service. Established in 1995, the report offers an up-to-the-minute, comprehensive overview of businesses for sale, latest distressed business listings and daily acquisition news.

Our Services

Businesses for Sale
Distressed Companies
List a Business
Help with Finance
Buyer Acquisition Service
Small Businesses for Sale

Company

About Us
Insights
News
FAQs
Reviews
Terms & Conditions
Privacy Policy

Get In Touch

020 8875 0200
[email protected]
167 Oakhill Road, London, SW15 2QW
Working hours: Mon-Fri, 9am - 5:30pm


Sign up to our free newsletter



© 1995-2021. Business Sale Report Ltd. All rights reserved. www.business-sale.com.