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EnergyHigh Street carnage: who's next?
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Britain's retailers are dropping like flies, with music giant HMV, photography specialist Jessops and video rental chain Blockbusters all forced into administration in the last few days.And there is doubtless more pain on the way. Here, we reveal some of the most likely contenders for closure.
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Broken Britain
Home Retail (Argos and Homebase)
Shares in Home Retail leapt by more than a third last year as investors reacted positively to the company's plans to restructure its Argos brand for the digital age.
However, despite recent figures showing that Argos sales increased by 2.7% in the 18 weeks from to January 5, 2013, margins continue to fall.
Fellow Home Retail brand Homebase has also struggled to pull in the punters, and new data from the Financial Services Authority reveals that at least nine big hedge funds are betting against the company's shares.
Mothercare
Having babies never goes out of fashion, but many mums-to-be now prefer to do their shopping online rather than struggling round the shops.
Maternity products retailer Mothercare is one of the losers of this trend. It recently reported a 7.4% fall in total group sales - despite growing international sales.
However, analysts believe that action is needed now if the business is to weather the "challenging consumer backdrop".
Others that could go under
Some 52 retail chains collapsed last year, and with three big brands going into administration already this year, the signs for the sector do not look good.
The British Retail Consortium has predicted that a number of well-known chains will collapse after failing to make enough money over Christmas.
"At this time of year there will be some retailers for whom the sums don't add up, and it will be a challenge," it said.
And while the retailers mentioned above are among those having a difficult time of it, they are far from the only candidates for collapse in the next year or so.
Other retailers that risk running into terminal problems include WH Smith, the book and stationery chain, and flooring specialist Carpetright, which has already narrowly escaped closure once.
Shares in Home Retail leapt by more than a third last year as investors reacted positively to the company's plans to restructure its Argos brand for the digital age.
However, despite recent figures showing that Argos sales increased by 2.7% in the 18 weeks from to January 5, 2013, margins continue to fall.
Fellow Home Retail brand Homebase has also struggled to pull in the punters, and new data from the Financial Services Authority reveals that at least nine big hedge funds are betting against the company's shares.
Mothercare
Having babies never goes out of fashion, but many mums-to-be now prefer to do their shopping online rather than struggling round the shops.
Maternity products retailer Mothercare is one of the losers of this trend. It recently reported a 7.4% fall in total group sales - despite growing international sales.
However, analysts believe that action is needed now if the business is to weather the "challenging consumer backdrop".
Others that could go under
Some 52 retail chains collapsed last year, and with three big brands going into administration already this year, the signs for the sector do not look good.
The British Retail Consortium has predicted that a number of well-known chains will collapse after failing to make enough money over Christmas.
"At this time of year there will be some retailers for whom the sums don't add up, and it will be a challenge," it said.
And while the retailers mentioned above are among those having a difficult time of it, they are far from the only candidates for collapse in the next year or so.
Other retailers that risk running into terminal problems include WH Smith, the book and stationery chain, and flooring specialist Carpetright, which has already narrowly escaped closure once.
High Street casualties
- Mothercare<p> Mothercare has long been battling tough highstreet conditions and continues to struggle against competition from rival Kiddicare as well as supermarkets and websites. In an attempt to boost profits, the baby products retailer recently launched a new-look 30,000 square foot store in north London, including an area to test buggies and prams plus a Costa Coffee.</p> <p> Despite recruiting famous yummy mummy, Mylene Class, to front the opening, and launching Jools Oliver's Little Bird collection in stores last week, City pundits warn it could be a case of too little too late.</p>
- Clinton Cards<p> The greetings cards specialist became the latest highstreet casualty in May with 8,000 jobs on the line when it was forced it into administration. Its biggest supplier, American Greetings, then bought Clintons out of administration and put the retailer through a rebrand including a new logo and complete in-store revamps.</p> <p> Its contemporary format includes new fixtures and fittings and easier to navigate stores, and will be rolled out to all 400 UK stores at the cost of £16million. Bosses aim to bring the brand back to profit within two years.</p>
- Thomas Cook<p> Battling high debt levels and a downturn in the global travel sector, Thomas Cook was brought back from the brink by a £1.4bn refinancing packaging in May, giving it a further three years to repay its debts. Soon after, the firm recruited new chief executive Harriet Green, who faces the task of reviving the travel company which last year issued three profit warnings and was forced to take an emergency £200m loan.</p> <p> The troubled tour operator hit difficulty in 2011 when the unrest in the Middle East and North Africa affected its operations in Egypt and Tunisia. The position worsened due to a fall in overall bookings by cash-strapped UK consumers, as well as the company's high debt levels.</p>
- La Senza<p> Poor sales in the run up to Christmas was the final nail in the coffin for several struggling chains, including lingerie retailer La Senza, which went bust in January 2012 with 146 shops and 2,600 staff. Kuwaiti retailer Alshaya bought part of the business, which saved 60 shops and 1,000 staff.</p> <p> La Senza has been struggling in a similar way to other specialist shops such as Game and Mothercare, which have been hit by cut-price competition at supermarkets and have no alternative products to help shoulder losses.</p>
- Blacks Leisure<p> Stricken retailer Blacks Leisure, which employed 3,600 staff across 98 Blacks stores and 208 Millets stores, went into administration in Janurary 2012 after failing to find an outright buyer.</p> <p> Soon after its stores were bought by sportswear firm JD Sports in pre-pack deal - an insolvency procedure which sees a company being sold immediately after it has entered administration – which saw most of Blacks' £36 million of debt wiped out.</p>
- Bonmarche<p> Fashion chain Bonmarche, which was part of the Peacock Group, was sold in January when the group collapsed due to unsustainable debts, resulting in 1,400 job losses and 160 store closures. Private equity firm Sun European Partners bought 230 stores, which continue to trade with 2,400 staff.</p>
- Woolworths<p> Administrators sounded the death knell for Woolworths in December 2008, leading to store closures that left 27,000 people out of work. Since its collapse former Woolworths stores have become a blight in many town centres and more than 100 of the large stores still lay vacant in January 2012.</p> <p> Loyal customers didn't have go without the family favourite store for long however as it reappeared online as Woolworths.co.uk in 2009, after Shop Direct Home Shopping bought out the Woolworths name.</p>
- Peacocks<p> Peacocks collapsed under a £740 million net debt mountain in January 2012 in the biggest retail failure since Woolworths. Despite being sold out of administration to Edinburgh Woollen Mill in a deal that saved 380 stores and 6,000 jobs, administrators from KPMG were forced to close 224 stores with immediate effect. This lead to 3,350 redundancies from stores and Peacocks head office in Cardiff.</p> <p> The high street name continues trading as bosses work to stabilise the situation, yet a further blow was dealt this month with news that the firm's pension fund is in £15.8 million shortfall as a result of the collapse.</p>
- Game<p> Game buckled under its £85m debt pile in March 2012 and was placed into administration after being unable to pay a £21m rent bill. Administrator PwC immediately closed 277 shops, with the loss of 2,000 jobs. Soon after, investment firm, OpCapita bought 333 Game stores, saving more than 3,000 jobs.</p> <p> Game's demise followed a string of profit warnings and the failure of nervous suppliers, including leading names Electronic Arts and Nintendo, to go on providing the latest games, further damaging poor sales.</p>
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