21 January 2025
Today’s company insolvency statistics show there were 138 retail trade insolvencies in November 2024, down 33% on the same month last year (207), and down 12% on the previous month (157 in October 2024).
Overall, wholesale and retail trade experienced the second highest number of insolvencies with 15% of distress cases in the 12 months to November 2024.
Gordon Thomson, restructuring partner at leading audit, tax and consulting firm RSM UK, said: “Overall retail insolvencies have declined, as retailers continued to hang on through the all-important Golden Quarter. However, the reality of lacklustre sales in December and depressed consumer confidence is now beginning to impact operators and we are seeing a significant rise in inquiries from company directors and other stakeholders in retail businesses.
“As retailers face seasonally lower trade in the first quarter of the year and with post-Budget headwinds looming, operators must assess their viability and whether they can navigate the hit of business rates and employment costs after lower Christmas sales. Options are available, but swift action will likely be required to deliver the optimum outcome.
“In turn, with increased wages, consumer confidence improving and further interest rate cuts expected, retailers should expect to see an uptick in spending in the second half of 2025. However, without immediate intervention from Government, the long-awaited consumer-led economic recovery might be too late for some, as all signs point towards more retail distress in 2025.”

