Shoe chain Barratts calls in the administrators

Posted on December 22, 2011 by admin in Finance

Over 4,000 jobs are at risk across the UK after shoe chain Barratts has called in the administrators due to difficult trading conditions.

Barratts and Priceless Shoes employ 3,840 staff in 191 stores across the UK and 371 concessions inside department stores. Deloitte’s have been appointed administrators for the business.

Daniel Butters from Deloitte’s said: “Barratts and Priceless Shoes have faced a downturn in trading as a result of the difficult economic conditions. This has been exacerbated by the unseasonably mild weather in recent weeks which resulted in fewer sales across new winter lines. We will continue to trade the stores whilst we seek a buyer for all of parts of the business as a going concern.”

This is a tough time for the retail industry, as falling sales and growing competition from online retailers has left many businesses struggling. The quarterly rent bill for retail businesses is due on Christmas Day and it is thought that the demand to pay this has forced Barratts to enter administration.

This is the second time the chain has appointed administrators. In 2009, the company managed to survive even after a CVA (creditors’ voluntary agreement) was rejected by their landlords.

Barrats is not the only retail business that is struggling at the moment. Peacocks and Blacks Leisure Groups are also believed to be suffering, with Sky News reporting that Peacocks is rumoured to be closing 200 stores.

Businesses that are struggling should look to companies such as Real Business Recovery for assistance in managing their finances and looking for a solution to keep them trading and not have to call in the administrators. With advice on everything from finding your nearest Official Receiver, to help with factoring and assistance on closing down your company should that be the best option for you, visit realbusinessrecovery.co.uk for more information.