More high street retail problems have arrived at our feet and I suspect this is just the beginning of a wave of failures set to occur during the course of this year.
Women’s clothing retailer, Ellie Louise, which trades from just under 100 shops in the UK, has collapsed into administration as a result of extended cash flow problems. Also high street retailer Comet, which trades from circa 250 shops, and employs 8,000 people, is in detailed talks with its landlords about closing badly performing stores and reducing rents on others. Comet are predicted to make a loss of £35m this year on a turnover of over £1bn.
More high street retail problems lead to more commercial properties falling in value. How are we going to combat the high street retail problems which are still alive and kicking? Who knows but the first step is to reduce prices, stimulate the market, and get cash flowing again.