The number of retailers to enter administration fell to their lowest level in four years in the first quarter of this year.

According to Deloitte retail administrations were down 65% year on year with 44 companies falling into administration in the first quarter compared to 124 retail companies in the first quarter of 2009.

Quarters on quarter administrations were down 6%.

Deloitte reorganisations service partner Lee Manning said: “The first quarter of 2009 saw exceptionally high levels of retail administrations and so it is not surprising to see a drop this time round.  However, this period can be make-or-break time for struggling retailers so the scale of the decrease suggests that many retailers have been successful in taking the measures necessary to equip their business for tougher trading conditions.”

He added: “Indeed, we have seen an increasing acceptance of the use of CVAs, and proactive steps to better manage cash flows.  However, whilst these figures appear to suggest an improvement in fortunes for the retail industry, the outlook is far from plain sailing.”

Ian Geddes, UK head of retail at Deloitte warned that consumers face a number of reductions in their disposable income over the next 12-18 months as the government takes steps to tackle the national deficit.