Comment on retailer finance and insolvency

Comment on retailer finance and insolvency

Shaila Verma, executive consultant of the insolvency division at accountancy and finance  recruiter Marks Sattin, says  “Re-financing and business strategy has been at the heart of the current spike in high street casualties this year. Many retailers have been living on borrowed time – and money – as they enjoyed credit streams which were left over from the boom before 2007. The straightened circumstances for lending now mean many business simply cannot continue to function. While insolvencies are always painful and unwelcome, the current spate will sort the wheat from the chaff left over from before the credit crisis and it is in that sense a good thing.

“Stormy financial conditions on the high street have seen a welcomed return to formal administrations for insolvency departments in accountancy firms. Accountants with insolvency expertise are always in short supply and firms will need to move quickly to ensure they are in a position to deal with the influx of further casualties during the next few months. For these departments we could see a pay rise of at least 6% across the board, with hires in to middle tier management really taking off.”