Retail insolvencies jumped 9% over the past year according to PwC.
In the 12 months to September, the retail sector experienced 1,743 insolvencies, up from 1,600 the previous year.
However, insolvencies this quarter have fallen by 20% to 346 compared to 428 in the second quarter of 2012. This is down 12% compared to the same quarter in 2011.
PwC business recovery partner and retail expert Mike Jervis said: “The September numbers reflect stakeholders supporting retailers, even distressed ones, as they go into the most crucial time of year.
“Those retailers suffering insolvency have been those who have used up all their options, like JJB, and run out of cash.”
Jervis said that retailers “keeping their nerve” and not discounting too early over the Christmas period will be critical over the next few months.
He said that retailers problems are also beginning to impact heavily on some landlords. He warned: “Managing real estate, especially when you have too many stores, is another key issue for all retailers since the wiggle room for landlords is reducing fast.”