January is always a bad time for retail business's as many try and capitalise on the Christmas boom to get them through financial difficulty. Once this spending dies down business's are inevitably begin to struggle again. This has been clearly demonstrated with a number of high profile retail failures.
Mid-way through January it was announced that administrators were appointed to the music, film and games retailer, HMV. HMV was first opened on London's Oxford Street in 1921 and the 92-year old retailer now has 223 UK stores along with a workforce of about 4,000.
It has been widely reported that it is the intention of the administrators to keep the business running while a potential buyer is sought. The retailer has struggled in recent years amid declining music, DVD and gaming sales due to rival retailers and downloads.
In a further blow to the high street and now vulnerable industry it was reported that DVD and games rental store Blockbusters had also entered administration this week.
In addition a liquidator was appointed to former Dragon's Den star Niall O'Farrell's Blacktie formal wear, which operates 11 outlets in Ireland, on 1 February.
With such high profile causalities early on in 2013 there are grave concerns what this year holds for the high street retailer.
If your clients are struggling to keep their retail business going. Call 01 9696500 and talk to Diarmuid, IIS’s retail specialist.