Is 2010 likely to repeat 2009 for the retail sector?

There is a significant amount of evidence that the retail sector of the UK economy will suffer in much the same way as it did in 2009 over the forthcoming months. R3 the Professional Association of Insolvency and Turnaround specialists reported on 30 November that "Retailers should prepare for New Year bloodbath" based upon opinion from within their ranks see https://www.r3.org.uk/newsandpress/default.asp?page=1&i=4&id=330#PressStory.

However, news on the high street is that retailers have seen a much better christmas than was expected. Is that the case?

Good news of itself may mean much for the wider economy but creditors may see this as an opportunity to push for receovery through formal proceedings on the basis that post christmas the debtor is in the best position it is likely to be in for some time. The financial status of the debtor can only deteriorate as the market hardens for reasons such as: -

1. continuing rise in unemployment that leads to lower confidence meaning less spending on the high street;
2. where expenditure over the Christmas period being higher than epxected what available cash there will be to spend will be diminshed.

All of the above opinion applies to the supply chain to retailers. the example of which is the collapse of Woolworths. The failure of Woolworth's had ramifications beyond those directly involved in the business and estimates suggest that there were a significant number of knock-on insolvencies as a result.

With all of this in mind there is no better time than now to get some advice is the financial situation seems parlous. Failure to do so may limit the options available to you, your business or company as creditors become even more agressive in their approcah to recovery.