INSOLVENCY risk among Scottish retailers has fallen in each of the last six months, a survey has found, and is lower north of the Border than in the UK as a whole.
The findings of the survey, by insolvency trade body R3, represent a boost to the Scottish retail sector ahead of the key festive trading period.
The proportion of Scottish retailers at greater-than-normal risk of insolvency now stands at 29.27 per cent, below the UK average of 31.19 per cent.
R3 noted that the proportion of retail businesses in Scotland at “heightened risk” of insolvency in November was four per cent lower than in May.
The R3 risk tracker, compiled using Bureau van Dijk’s Fame database, measures the proportion of businesses across selected sectors which have a heightened risk of entering insolvency in the next year.
Tim Cooper, chair of R3 in Scotland and partner at law firm HBJ Gateley in Edinburgh, said of the latest findings for retailers north of the Border: “While the month-on-month decreases in insolvency risk have been relatively small, it is still a positive indicator about the improving condition of the sector.
“It’s good to see retailers in a more financially secure position. Hopefully this trend will continue in the coming weeks and a successful run-up to Christmas could lower the proportion of businesses with a high insolvency risk even further.”
However, he added: “Retailers are still facing challenges. The advent of ‘Black Friday’ and ‘Cyber Monday’ sales are putting increasing pressure on shops, particularly smaller ones. For those that are struggling with their finances, it’s important to seek professional advice early.”
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