Proposed job losses and store closures increased in sharply January as difficult economic conditions and squeezed household budgets pushed the likes of Peacocks and Bonmarché, La Senza and Pumpkin Patch into administration.
According to the latest research conducted by The Retail Database’s Administration Watch, job losses directly associated with these January administrations are estimated to be around 3,516, a 360% rise on December and more than ten times higher that January 2011.
Simon Wallace, Managing Economist at The Retail Database, said: “Rising job losses on the high street form part of a vicious cycle of higher unemployment, low confidence and falling consumer spending.”
The results from Administration Watch showed an estimated 295 stores have closed, or are in the process of closing, as a result of administration – a 900% rise on January 2011.
“Although we expect January to be the high point for retail administrations, conditions on the high street will remain difficult and further failures by major retailer should be expected” said Simon Wallace.