According to Wilkins Kennedy, the accountancy firm, the number of business that went into administration went up by to 670 in the 1st quarter of 2012 compared to 458 in the last quarter of 2011. During this time the number of retailers that went in to administration rose by 38%. Obviously the collapse of Clinton Cards is still fresh in peoples minds but is the high street really in such a bad way.
Looking at the statistics on a year by year basis the following picture emerges:
We have taken our figures direct from the Insolvency Service and the Office of National Statistics. In the Q1 2011 the number of businesses that went into administration was 782 compared to 779 in Q1 of 2012. So a fall then! But yes, there was a big rise in retail administrations from 34 in Q1 2011 to 57.
So all in all retail is having a tough time but overall the number of businesses falling into administration is not rising. So which businesses are faring best? Construction, Transport, restaurants, travel and especially manufacturing have all shown a fall in the number of businesses going into administration. Manufacturing administrations fell by 36%!
All this is not surprising given our exports are doing well while consumer spending is falling.