Insolvency Report Claims A Quarter Of Scottish Shops Are At Risk Of Going Bust In Next Year
More than a quarter of shops and a fifth of hotels are at serious risk of going out of business in the next year, according to the trade body for insolvency professionals, DailyRecord.co.uk reported. Research by R3 found 274 retail businesses and 30 hotels had a high risk of going bust within the next 12 months. Analysis showed there are a further 1238 retailers and 137 hoteliers who are vulnerable to failure over the same period. This means that 26.15 per cent of retail businesses and 17.99 per cent of hotels in Scotland are at some risk of failure. Scottish R3 spokesman Iain Fraser said: "It is not likely to surprise anyone that the retail and hospitality sectors are vulnerable. "Retail, as has been widely reported, is suffering both from a lack of consumer confidence coupled with systemic changes to the way in which people buy products. The shift to online purchasing is greatly affecting retailers, many of which have not effectively moved online. Whilst there will always remain high street retail outlets, their composition, offerings and delivery have changed dramatically over the last ten years and will continue to do so. Those retailers that do not respond to these changes will, unfortunately, cease to exist." The research was compiled using the Bureau van Dijk Fame database. Businesses classed as "at risk of failure" are defined as having a QuiScore below the normal band of 37-56. The QuiScore, ranging from 0 to 100, is a measure of the likelihood of failure in the 12 months following the date of calculation. Companies with a high risk of failing would fall in the 1-18 band. Read more.