Many big retailers have gone bankrupt as the Covid-19 outbreak has accelerated recessions in many industries. Today, pressure from supply chain issues, high inflation not seen in 30 years and cost-of-living tightening affecting consumer spending will make retailers face another turbulent year.
The latest news from Home Micro Watch: In the past two years, as the outbreak of the new crown epidemic has accelerated the recession of many industries, many large retailers have gone bankrupt. Today, pressure from supply chain issues, high inflation not seen in 30 years and cost-of-living tightening affecting consumer spending will make retailers face another turbulent year.

retail crisis

Helen Dickinson, chief executive of the British Retail Consortium, said: "Rising inflation is an ongoing concern for consumers and retailers. While retailers are struggling to absorb rising costs, But rising transport, energy, commodity prices and wages are forcing them to raise commodity prices."

"Retailers are trying to reduce cost growth and many supermarkets have expanded the range of food values, but overall retail prices are likely to continue to rise," added Helen Dickinson.

According to data collected by the Centre for Retail Research (CRR), retailers that have called for bankruptcy so far this year include, but are not limited to:

Studio Retail Group

Studio Retail Group is a Lancashire-based online retailer selling clothing, homewares, appliances and gifts. Sales in the last financial year were £579 million, with a customer base of 2.5 million, according to the company's earnings report. However, due to the long-term disruption of the supply chain, Studio Retail Group has been unable to meet customer demand and the loss of peak sales of the entire group, coupled with serious problems such as declining sales in the fourth quarter and a shortage of funds, which caused the stock price to fall sharply.

Studio

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Studio Retail Group, which went into receivership in mid-February 2022 and owed more than £80m in debt during that period, sold to Mike Ashley's Ferdinand for just £1 Fraser Group. Fraser Group then bought Studio Retail Group's secured lender's claims on it for £26.8m, with a pledge to spend £100m on the business while retaining around 1,500 jobs.

Sofa Workshop

Sofa retailer Sofa Workshop collapsed this month, losing 77 jobs. Sofa Workshop has a total of 16 physical stores in the UK and provides e-commerce services. Designated regulator PwC said the company's collapse was due to increased supply chain and transportation costs resulting in transaction losses that significantly outstripped profits. Retailer Sofa Workshop said it is no longer taking orders, but will still fulfill existing orders.

sofa workshop

Big Home Shop

Based in Burnley, Big Home Shop sells garden furniture, outdoor equipment and other furniture products primarily through Amazon and other online marketplaces. It collapsed in January as sales and costs were hit by delays in shipments from China, unable to raise the additional funds demanded by lenders and creditors.

T M Lewin

Shirt brand T M Lewin, founded in 1898, is now facing a big challenge as sales of dress shirts fall as consumers work from home and restrictions on large events. Before the pandemic, the company had grown to operate more than 150 stores worldwide.

TMLEWIN

Will Wright, executive director of consultancy Interpath, said: "Men's wear, especially formal wear, has been one of the hardest hit sectors of the retail sector during the pandemic, as work-from-home measures and movement restrictions mean there is a need for more attention to suits. Demand for and formal wear has dwindled. Unfortunately, despite T M Lewin’s major restructuring at the start of the pandemic and a move to an online model, there is no doubt that the impact of the pandemic on this famous British brand has been enormous.”

The New York Times recently reported that Mike Ashley's Fraser Group, Marks & Spencer, Charles Tyrwhitt and Crew Clothing all Considering the acquisition of T M Lewin.

Dawnfresh seafood and R R Spink & Sons

Dawnfresh Seafoods and R R Spink & Sons, one of the UK's largest retail fish and seafood suppliers, is another retailer that went into receivership last month. Founded in 1973 and headquartered in Uddingston, South Lanarkshire, the company operates seven fish farms in Northern Ireland and Scotland, with production in Uddingston and Arbroath and processing facilities.

The company has recently invested in upgrades to its plants and systems to improve efficiency and reduce costs, but continues to suffer from rising costs, excess capacity and cash flow issues. The Uddingston plant, which is operating at a severe loss, will close immediately, resulting in the redundancies of 200 people.