The impact of the credit crunch could mean Britain’s high streets could be turned into ghost towns. PwC estimates that 3,600 shops could be seeking new tenants if 10 per cent of national retailers get into financial difficulty over the next year.
The gloom will be further exacerbated by the growth in online shopping and the impact of new shopping centres such as Cabot Circus in Bristol and Westfield London.
PwC partner Barry Gilbertson told The Times: “What we are seeing is going to have a huge impact on the shopping environment, in particular high streets. The problem is who will take over the empty units? A few years ago coffee shops came in, but now there is really no one waiting in the wings.”
PwC has worked on eight restructurings or formal administrations of national retailers since autumn last year where, on average, 27 per cent of the store portfolio was closed or sold. Of 20 insolvencies this year, the average number of stores exited is 36 per cent.
About 30 retailers have gone into administration so far this year – including Rosebys, Stead & Simpson, MK One and MFI. In most cases, a chain will emerge from administration with a far smaller portfolio.
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