The number of retailers falling into administration in the last quarter of 2010 fell 39% year-on-year.
According to the Insolvency Service, 58 wholesale and retail companies fell into administration in the final quarter of 2010, compared to 95 that went bust in the same period in 2009. This represents an 18% drop from the third quarter of 2010.
The number of CVAs remained constant year-on-year at 22.
Grant Thornton head of retail Barry Knight said: “The drop is encouraging and shows that the sector is moving in the right direction for now, particularly in the light of a shrinking economy and adverse weather conditions towards the end of the last quarter, which kept many shoppers off the high street.
“There is however, no room for complacency as retailers will still face very difficult conditions in the year ahead, and this might be the lull before the storm.”
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