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Analysis of major retail insolvencies since 2011 reveals that 53% of jobs are not made redundant but are preserved during the insolvency process, while 48% of stores survive.
Insolvency trade body R3 has been tracking the survival rate of jobs and stores over the last 18 months for major retailers including Blacks, Clinton Cards and Aquascutum.
R3 President Lee Manning commented:
“These figures show that the insolvency process, whilst never good news, can result in significant parts of the business surviving. The fact that over 50% of jobs remain intact is positive given the trouble a business is likely to be in at the start of insolvency – by definition unable to pay debts as they fall due.”