Interesting and prominent story in today's Sun:
The Sun wrote:NIGHTMARE ON HIGH STREET
Retailers ‘running out of time’ in the face of insolvency in the New Year amid Toys R Us fears, experts claim
MANY retailers are “running out of time” in the face of a perfect storm buffeting the sector, insolvency experts say.
As TOYS R US teeters on the brink of administration, BEGBIES TRAYNOR predicts a marked rise in insolvencies in the New Year.
And it says household names will be among the many casualties.
Research by the firm shows 43,677 UK retailers are showing signs of “significant” financial distress as consumer spending slows. This is a 22 per cent rise on December last year when 35,845 found themselves in a perilous position.
But Julie Palmer — a partner and retail expert with Begbies Traynor — said it was unusual to see so much distress before the make-or-break Christmas trading period.
Pressure on the sector is set to rise further at the quarterly rent day, which falls on Christmas Day.
Ms Palmer said: “I fear UK retailers are now in the midst of a perfect storm.
“November’s interest rate decision, rising inflation, falling real wages, reduced credit availability and increasing Brexit uncertainty are all combining to put unprecedented strain on household budgets this Christmas season, pushing consumer confidence to an all-time low.
“Although this week’s mild weather might very well encourage a few extra shoppers to leave the fireside for a day of last-minute spending, I’m afraid it’s probably too little, too late.”
At the beginning of December troubled Toys R Us announced it was set to close a quarter of its stores.
But unless it strikes a deal with the UK's pension compensation scheme - the Pension Protection Fund - the business could be forced into administration putting more than 3,000 jobs at risk.
Many large businesses are increasingly struggling to pay for expensive gold-plated pension schemes, which were commonly offered in the 1960s, 1970s and 1980s.
If the toy giant does go bust, it will be the latest in a long-line of former high street favourites that have gone to the wall, or have faced difficult trading conditions.
Back in 2008, kids' favourite Woolworths closed it doors for the final time - with the loss of 30,000 jobs.
JJB Sports - which was founded by former Wigan Athletic chairman Dave Whelan - collapsed in 2012 with debts of around £150million.
The same year, electronics store Comet also collapsed.
Department store BHS entered administration in 2016, with former boss Sir Philip Green coming under for selling the business for just a £1 a year before it collapsed.
Green eventually agreed to stump-up £363million to plug part of the retailer's £571million pension black hole.
Fashion brand American Apparel closed 12 of its 13 stores in the UK right before Christmas last year with 150 staff losing their jobs.
Last month, Marks and Spencer said it would be speeding-up its plans to close 30 stores across the country due to tough trading conditions.
It's not all bad news - high street tailor Austin Reed collapsed in 2016 but was resuced by Edinburgh Woollen Mill just seven months later.
Ms Palmer added that the “increasingly frantic” promotional activity witnessed on the high street this week has not had the same effect on consumers as it once did — and many retailers have “all but run out of time”.
She said: “Shoppers are savvier than ever and prepared to search online for the best deals having grown wise to the gimmicks and discounts on offer in store.”
The future of the British arm of Toys R Us will be decided later today when creditors vote on a restructuring deal designed to save most of its stores.
I was in Sutton high street the other week - it's visibly going downhill. Loads of empty shops, and I encountered 5 beggars (one outside Halifax sat next to the cash machine).