The number of retailers falling into administration jumped 6% year on year in 2012, according to accountancy firm Deloitte which predicts further distress for the sector in the year ahead.
Over the year, 194 retailers entered administration compared with 183 in 2011 and 165 in 2010.
Deloitte restructuring services partner Lee Manning said: “These figures are a stark reminder of the difficulties which continue to face the high street. Constrained household budgets and the structural challenges facing the sector mean it is certain that we will see further distress next year. Christmas trading appears to have been reasonable, though not spectacular and not enough to prevent insolvencies in the first quarter of 2013.”
However, there was a slight fall in retail administrations in the final quarter of the year, down to 37 from 42 in 2011.
Manning added: “Strong consumer spending growth is not likely to return any time soon, which makes it essential that retailers address the fundamental issues affecting the industry - store portfolios and multichannel.
“Too many retailers have too many stores and 2013 is likely to be marked by further closure programmes, both within and outside of formal insolvency processes.”
Administrations across all sectors dropped 9% over 2012.