Commenting on HMV, the latest retailer to announce that they are going into administration and putting over 4,300 people at risk, Chris Ratten, Head of Restructuring at RSM Tenon, said:
"HMV has shown signs of distress for many months and today's news is not unexpected. Increased online competition and the increase of music downloads has caused HMV to be the latest victim. Those retailers who are able to forecast and adapt quickly to customers’ demands and manage their cost base effectively will be those who survive and be successful. There is clearly a strong link with people’s technology buying habits in the recent cases including Comet and Jessops”.
“In 2012, approximately 1,300 retailers were insolvent, a rise of 7 per cent when compared to 2011. We expect this year to be worse as those who have managed to teeter on the edge for the last few years will really feel the full effects of the reduction of discretionary spending, fierce competition and reducing cash reserves. According to our latest Tracker research, we believe that 12,679 retailers have a high risk of insolvency out of over 100,000 retailers nationally. When compared to December 2011, those at high risk have actually increased by 40 per cent”.
*Tracker is RSM Tenon’s online monitoring system. Visit the website at www.tracker-online.com.
Restructuring service line in RSM Tenon
The Restructuring service line of RSM Tenon is the leading trustee in personal bankruptcy and the second largest corporate appointment taker in the UK. Specialising in turnaround, restructuring and insolvency in both the corporate and personal sectors, the Restructuring service line of RSM Tenon is led by 34 partners and supported by over 300 staff operating from a network of over 30 offices across the UK.
About RSM Tenon
RSM Tenon is the 7th largest accountancy and business advisory firm in the UK, employing more than 2,600 people across over 35 offices. RSM Tenon Group is an independent member of RSM International, the 7th largest network of independent accounting and consulting firms worldwide with more than 700 offices across more than 100 countries.
Visit the RSM Tenon website - www.rsmtenon.com - or to understand more about RSM International – www.rsmi.com.