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Wednesday, July 30, 2008

U.K. Retail Business Administrations Fall by 30%, Deloitte Says

July 30 (Bloomberg) -- The number of U.K. retail businesses placed in administration in the first half of 2008 has fallen by 30 percent as the worst effects of competition from Internet sales subsides, research by Deloitte & Touche LLP shows.

Book, music, DVD, gift and toy retailers contributed to the change, the business advisory company said today in an e-mailed statement. Administration figures are generally ``skewed'' toward smaller businesses, Deloitte said. Administration in the U.K. is a procedure for troubled companies, comparable to Chapter 11 in the U.S.

Clothing, fashion and cosmetics companies had a 21 percent increase in administrations, the only sector to have a rise.

``The drop-off in figures in these sectors this year shows that the worst effects of this maturing market may have been felt,'' Lee Manning, a spokesman for Deloitte said in the statement. ``We would expect furniture and household-related retailers to experience an increase in failures next quarter.''

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