With such an inconsistent framework and without consistent customers, many shops have struggled to sustain a workable business model. And with news that the holiday period for business rates has come to an end, more shops could soon close.
Many factors have contributed towards the demise of physical stores, many of which have been amplified due to the pandemic. Online stores are now dominating the industry, and since they offer greater convenience and simple shielding from the virus, it appears we could be about to witness a permanent shift away from traditional high streets.
According to Sky News, vacancies across high streets, retail parks and shopping centres have grown to 14.5% in the recent quarter. The worst affected regions are the North East, North West and Wales, where a flurry of lockdowns have hugely impacted shops to the point of no return.
People working in fashion retail are likely to have experienced the most sleepless nights. They have been hit the hardest, and if you’re a business owner of such stores who can’t see any light at the end of the tunnel, you need to stop kidding yourself and think about long-term strategies that safeguard your reputation, finances and any assets.
Mounting debts, regular layoffs and no clear indication that things will pick up again on the high street, and you can clearly see how certain retail businesses may have to think about insolvency procedures. Some of these insolvency solutions can help to give you some much needed breathing space as you attempt to move out of troubled water.
Maybe consider the HMRC right to pay! Here, you can concentrate on re-energising your business and making the necessary alterations that best fits with current trends, making your business better aligned with what works in the present day. Just make sure you’re in a position to meet agreed payment dates, and any liabilities which may surface during this period.
If you’re only partially damaged, you could also look into administration, which once again hands people some crucial time to put things right. The main benefit for this procedure would be continued trading whilst a suitable sale can be made for the business and its assets. As a result, the business could be acquired and then operate under new guidance, so a great way to possibly reduce the likelihood of mass redundancies.
Does the end appear to be in sight for your retail business? Here at RG Insolvency, we can help you discover the most appropriate procedures that suit your individual case, walking you through each step under careful & experienced guidance all the way. Contact our team today for an initial discussion.