British Retail Operators Face Bankruptcy Craze

Beijing time December 21st evening news, focused on providing enterprise restructuring and Finance adviser AlixPartners LLP, a leading consultancy, said the number of bankrupt companies in the UK retail industry is likely to hit its highest level in 4 years because of the weak Christmas sales that led retail chains to be unable to pay the rent due to expire this month.

AlixPartners Sanjay Bailur, director general of the British Department, said in an interview: "we are likely to see a large number of retail companies fail at the beginning of the new year, which may include some popular brands." He pointed out that the outlook for the British retail industry has deteriorated more than in the past three or four years.

The industry pointed out that disappointing Christmas holiday sales performance may become Retailer The fatal blow. Over the years, British retailers have been reluctant to insist. Bailur pointed out that many companies such as clothing, books, music and toy retailers have "lost their focus", leaving only too many profitable shops at the end, resulting in the failure of their expansion plans, both in the Britain Both domestic and overseas markets are like this.

British Sugar maker Thorntons (THT) shares fell sharply today, the highest level in at least 22 years, because the company said its annual earnings will be less than expected. Earlier this week, HMV Plc, Britain's largest CD and DVD retailer, said the lack of sales performance could lead to "big questions" about the company's future prospects. HMV has more than 250 retail outlets with a total debt of 163 million 700 thousand pounds (US $254 million). The outdoor clothing chain store Blacks Leisure Group Plc (BSLA) has announced earlier this month that it will be on sale because the company's share price fell sharply by 95% in 2011.

According to data released by market research firm GfK NOP, the UK consumer confidence index has dropped to its lowest level since the worst financial crisis in 2009, mainly due to consumers' concerns about the recovery process of the financial market and the sovereign debt crisis in the euro area. According to data released by the British Retail Consortium, retail sales in the UK dropped by 1.6% in November, the highest in 6 months, due to the warning that the economy once again fell into recession, prompting shoppers to cut spending.

British retailers usually pay quarterly rent three months in advance, and for most retailers the quarterly rent will expire in December 15th. Jonathan De Mello, the retail consultant head of CB Richard Ellis Group, a real estate broker, said property owners and banks expected retailers to get enough good Christmas sales before they could afford to pay the rent in Jonathan.