ICSM Retail Insolvency News: Going bust on the High Street – more names in trouble
By Harry Mottram: Despite a slight upturn in UK retail sales in the final quarter of 2025 (according to the latest official figures) the High Street continues to see problems. UK retail sales volumes rose by 1.8% month-on-month in January this year – up again from last month. However, the rise in National Insurance contributions, energy cost increases and other inflationary factors like interest rates have seen firms with historic debt hitting the buffers. There’s also the ongoing aggravation of business rates penalising bricks and mortar stores along with online shopping and cheap Chinese imports which undermine trade.
It’s not the first time the fashion chain Quiz has entered administration but this time it looks like curtains for the store founded in 1993. Disappointing Christmas trading has seen it collapse for the third time. The 40 stores and concession outlets continue to trade as they hold closing down sales and their online side has shut down. Suppliers and staff must now wait to see if there is any cash left over for them.
Known as the coming-of-age store for teenage girls Claire's accessories has again entered administration just weeks after the business had been rescued from collapse last year. The business is still trading but can be sold is another matter? Last month, another piece of teen-friendly retail Game submitted a notice of appointment of administrators. It’s the second time Game has entered administration since 2012 – as online gaming continues to damage this once thriving sector.
The end of January The Original Factory Shop entered administration, putting the jobs of its 1,000 strong workforce in doubt. Administrators from Interpath Advisory will oversee the insolvency process. The administrators listed poor trading conditions, high inflation, rising labour costs due to Government regulations, and a decline in consumer confidence as reasons why it faced collapse.
Upmarket fashion retailer LK Bennett is to close all its standalone stores after going into administration despite investment firm Gordon Brothers buying the brand. To compound the high street’s problems they didn’t want the shops and staff. There are nine standalone shops and 13 department store concessions.
Ian Carrotte of ICSM said the retail sector had always been buffeted by the winds of changing consumer fashion, high overhead costs and in recent times the effect of Covid’s shutdowns which speeded up the switch of consumers buying online. However, he said shopping on the high street still remains popular, with as he said, ‘the death of the department store having been greatly exaggerated.’
He said: “Across the UK B&M are opening new stores, Frasers has a new department store in Peterborough, near me M&S in Bristol are opening a store in Cabot Circus and there are openings in other cities for Lucy & Yaj and Stradivarius. The sector has many problems – and department stores have long lists of suppliers and huge overheads. Profitability is difficult with historic debt as Debenhams found out.”
He advised all suppliers to be careful is allowing longer credit terms as no one is safe in this economic climate. ICSM is there to help firms fighting late payment he said.
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