Retailers Should Take Action to Avoid Administration
The collapse of Blockbuster, HMV & Jessops are a warning to retailers to take action.
These well-known retail chains became the first high street giants to go into Administration in 2013 and with seasonal sales year-on-year remaining flat, Bridge Newland are calling on retailers to be proactive in ensuring they don’t suffer the same fate.
Images from The Mirror & The Financial Pages
If forward planning is made then there are strategies which can be adopted to reduce the risk of damage to your Company and keep businesses afloat, but decisive action must be taken to achieve this.
It is often too late if action is taken at the time when you start to experience debt problems therefore Companies need to anticipate the threats and address them before they occur.
My view is that Jessops has suffered its fate, partly because there are many cheap printing services available online and partly because tablets and smartphones offer excellent quality for the majority of the general public therefore there is no need for customers to purchase a second product. Had Jessops anticipated these issues and diversified sooner then i am almost certain that their retail chains would have been saved.
Get Administration Support Early
Often companies come to a business recovery & insolvency firm like mine when it’s too late to take any action other than to sell off the company’s assets and go into Liquidation. However, if a Company acts when the first warning signs appear then more business recovery would be achieved and many more success stories would be reported in the news.
We work with you and related specialists such as financiers, Lawyers and retail gurus to help your Company get back on track. If it is decided that the closure of your Company is the best solution we can approach this from a position of strength rather than as a last resort, which can be far more costly.