The 29th of September was another “Quarterly Rent Day”. The rent day identified many retail businesses that had survived the recession, but did not have the funds to meet their rental obligations. Even more, 10% of retails are very close to entering administration in the coming financial year, according to the latest statistics from an industry trade body.

The Quarterly Rent Day once more pushed dozens of businesses into administration. According to figures published from R3′s Business Distress Index – which measures the views of over 500 businesses – a quarter of retailers are experiencing some kind of cash flow difficulty while six in ten have confirmed a decrease in profitability.

According to UK financial experts, the main reason of retail difficulties is that consumers have less money to spend, stores are discounting their prices to get people through their doors; this is at a time when inflation and rising commodity prices have increased.

President of the trade body added that “Given the nature of the retail business, it is extremely worrying that one in four is experiencing cash flow difficulties. This suggests that many are holding a large amount of stock or have slow moving stock”.

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