One of the UK’s top insolvency practitioners has told landlords there will not be a wave of retailer administrations despite the recent collapses of BHS and Austin Reed.
Deloitte partner Neville Kahn, at EG’s Retail Summit, said: “Landlords do not need to get nervous about this. We do not think the amount of insolvencies is going to get higher.”
He said the lesson of the past was that retailers, such as Woolworths and Comet, had been left with outdated brands because of underinvestment, and those left are stronger.
“Whereas before the landscape was dominated by the retailers and customers had little choice, in the digital age the choice is huge and it is a global play, which is why it needs a lot of investment.”
Many insolvency cases were connected with a period during which people had money to spend and could shop at places with a strong offering, he said.
“The last instances of high insolvency have been 2008 and 2012, which is when the shopper had money in their pocket. Over the next couple of years, we don’t see a particular increase in spend and so we do not expect a spike in retail.”
