BUSINESS experts have warned “time may be running out” for the high street after the Scottish retail sector recorded its highest-ever quarter for insolvencies in the first three months of this year.
Almost 30 retailers were made insolvent during the period from January to March, according to accountants and business advisers French Duncan LLP.
A total of 28 stores failed over the period, compared with 68 recorded for the whole of 2018.
French Duncan suggested there were “major problems” in the retail sector that need to be addressed.
Eileen Blackburn, head of restructuring and debt advisory, said: “As the retail sector has been steadily experiencing very high numbers of business failures over a prolonged period, this does not bode well for an uplift in the sector despite recently reported improved sales figures.
“Clearly there are major problems with retail which are not being addressed. Change needs to happen soon if we are not to see our high streets decimated by insolvency and the closure of many familiar and well-loved shops.”
Blackburn added: “There must be some negotiation on the part of landlords and councils to accept that if they are to continue making money from retailers they must accept and facilitate a situation where retailers can make money.
“Treating the retail sector as a cash cow simply doesn’t work any more. To ensure we have a high street in the future then councils, landlords and retailers must get together and work out a mutually beneficial system. The latest insolvency figures indicate that time may be running out.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here