Bad Debts and Insolvencies Plague UK Retail Sector

  • Bad debt owed to UK retailers increased by £51.5m in three months, reaching £53.6m
  • Creditsafe’s report shows a 2464.5% increase in bad debt
  • Retail business failures rose by 59.4% in the past year
  • Poundworld and Debenhams faced financial struggles
  • ASDA, Iceland, and Ocado saw growth amidst challenges
  • 11,475 new companies were created in Q2 2018, a 40.3% increase from the previous year

A recent report by Creditsafe reveals a staggering 2464.5% increase in bad debt owed to UK retailers, reaching £53.6m in just three months. This rise has put additional pressure on the struggling retail industry, with company insolvencies increasing by 59.4% from the previous year. Poundworld and Debenhams faced financial difficulties, while ASDA, Iceland, and Ocado experienced growth amidst these challenges. Despite the hardships, 11,475 new businesses were formed in Q2 2018, a 40.3% increase from the same period last year.

Factuality Level: 8
Factuality Justification: The article provides accurate information from a credible source (Creditsafe’s quarterly Watchdog Report), discusses relevant data and trends in the UK retail industry, and includes expert commentary from Chris Robertson. However, it could be improved by providing more context on the factors contributing to the increase in bad debt and insolvencies, as well as a more detailed analysis of the impact on the overall economy.
Noise Level: 4
Noise Justification: The article provides relevant information about the increase in bad debt and insolvencies in the UK retail sector, as well as some insights on the growth of larger stores like ASDA and Ocado. It also includes a quote from an expert that adds value to the analysis. However, it could benefit from more data or evidence to support its claims and explore potential solutions for the challenges faced by the retail industry.
Financial Relevance: Yes
Financial Markets Impacted: UK retailers and related companies
Financial Rating Justification: The article discusses an increase in bad debt owed to UK retailers, company insolvencies, and the impact on businesses in the sector, which are all financial topics. It also mentions the creation of new businesses as a response to market conditions.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: No extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk