Keeping your business out of the cold and staying in the black
With the latest series of high-profile retail collapses, following in the footsteps of The Body Shop, Paperchase, Cath Kidston, Ted Baker and now Everest 2020 Limited (who supplied doors and windows), how can companies survive and thrive going forward?
Current issues and trends causing business insolvency
With many retail companies facing difficult times and possibly insolvency, there are many similar factors and challenges among them, which are:
- Inflation
- Reduced consumer spending
- Rising costs have hit retailers hard
- Lack of marketing
- Loss of market share
- High overheads
- Staffing costs/issues
- Poor cashflow
- Rent Arrears
In retail, spending during the 2023 pre-Christmas quarter, known as the “golden quarter,” was much quieter than expected, leaving brands with little wiggle room in the leaner months.
Ted Baker collapsed due to a confluence of internal issues and market conditions. But whatever the ultimate cause of its decline, its loss will be missed by many who wore the brand.
Avoiding insolvency – keeping warm and ahead of the curve
Many companies are contemplating how they can survive going forward. With increasing competition and the cost-of-living crisis driving down sales, to avoid insolvency, companies should consider the following:
- Economic – Essential cost saving
- Technical – Using new processes or equipment
- Organisational – Necessary changes to the organisation of the business
- Reducing unnecessary overheads – Renegotiate leases etc.
- Reviewing finances regularly – Weekly/monthly basis
Advice for avoiding insolvency
In whatever sector you operate your business, there are certain steps you can take to try to recover it and avoid insolvency during these difficult times. With the guidance of experienced recovery and insolvency professionals at BRI Business Recovery and Insolvency, your business may stand a chance of recovery.
If you have any concerns or wish to speak to someone in confidence about avoiding insolvency or any other financial issues, please do not hesitate to contact us.