…and another one!

BBC reports

The womenswear company Viyella, which was founded in 1784, has become the latest long-established British company to call in the administrators.

The company has annual sales of about £30m and operates 40 stores, 64 concessions and four clearance outlets.

Of course like other retailers mentioned in this blog, only Woolworths has actually closed, the others are “only” in administration, but more often then not this can lead to at a minimum closure of lots of stores.

Even retailers not in administration are feeling the pinch and closing stores. BBC also reports on Marks and Spencers who are closing stores and cutting jobs.

Marks and Spencer plans to close 25 of its small Simply Food stores and another two of its regular stores.

The closures will mean the loss of 780 jobs. The retailer is also planning to cut 450 head office jobs.

The retail sector which weathered the last few recessions has been hit very hard by this one. The difference this time, is that margins are tight so it doesn’t take a large drop in sales for it to have a major impact on the profitability of the retailers.

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