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Tens of thousands of retailers are now in significant financial distress as Tier restrictions take their toll.
Some 39,232 retailers are believed to be in serious trouble, an increase of 24 per cent on the same period in 2019 and an 11 per cent jump on Q3 this year.
Arcadia and Debenhams are amongst those who have already fallen this year.
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Despite the furlough scheme and various rate reliefs, the figures – compiled by insolvency firm Begbies Traynor – also show a year-on-year 18 per cent increase in firms in the hospitality sector in danger of shutting up shop for good.
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Today British Chambers of Commerce chief has called for far greater support for businesses facing difficulties as a result of lockdown restrictions.
Julie Palmer, a partner at Begbies Traynor, said it had been “one of the toughest years ever experienced in the retail sector.”
“Although there are increasing expectations that 2021 will bring more positivity, the effects of Covid-19 will continue to create a chill throughout the whole of the year and beyond, with it likely we are only seeing the tip of the iceberg for financial distress amongst businesses currently,” she continued.
“Both recent history and these figures show yet more high profile retail and hospitality insolvencies are probable as a combination of onerous debt and the structural changes brought about by the Coronavirus pandemic continues to take its toll.”
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