Mike Jervis, PwC insolvency partner and retail specialist, commented:
“Landlords have seen many problems over the last two quarters and retail continues to be one of the most vulnerable parts of the economy.
“Many retailers are still not being strategic in terms of how much space they’ll need and we often see over expansion lead to distress. At that point, if they are to maximise their chances of survival, it is essential for retailers to sustain open communication with all their stakeholders including suppliers, landlords, credit insurers and banks. For those that have already taken too many units they need to be realistic and plan ahead to liaise with their landlords as early as possible.
"The June quarter is historically not a high point for retail insolvencies: however, not all retail is homogeneous - for example, given the recent bad weather many fashion retailers have the wrong stock.
“So while the worst may have passed for this year at least, we expect there to be further pain for landlords in the second half of the year, and concentrated on specific parts of the retail market."
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