Scotland business

Half of retail staff keep jobs in insolvency says R3

Clintons shop front
Image caption Clinton Cards is one of a number of high profile retailers that has gone into insolvency

More than half of retail workers whose employers hit insolvency retain their jobs, according to experts.

R3, the insolvency trade body, says 53% of jobs in major retail insolvencies since the start of last year are preserved.

It also found that 48% of store units survive a move through administration or receivership.

Among the major closures over that time were Blacks, Clinton Cards and Aquascutum.

R3 Scottish council member John Hall: "These figures show that the insolvency process, whilst never good news, can result in significant parts of the business surviving".

He added: "The fact that over half of jobs remain intact is positive given the trouble a business is likely to be in at the start of insolvency."

The insolvency accountant added: "Much of the retail sector needs to change its methods of meeting customer expectations or face extinction.

"Store portfolios are simply too large at present, so shedding some unprofitable stores is part of this evolution."

He cited Deloitte accountants' calculation that retail chains need to shed between 30 and 40% of their stores over the next three to five years.

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