Business experts are warning that time may be running out to save the high street as nearly 30 retailers went insolvent in the first quarter of this year.
According to French Duncan LLP who are business advisors and accountants the Scottish retail sector suffered the highest quarter for insolvencies.
French Duncan LLP said “major problems” need to be addressed in the retail sector.
Eileen Blackburn, head of restructuring and debt advisory at French Duncan LLP said, “Given that the retail sector has been experiencing steady very high numbers of business failures over a prolonged period this does not bode well for an uplift in the sector despite recently reported improved sales figures.
“Clearly there are major problems with retail which are not being addressed.
“Change needs to happen soon if we are not to see our high streets decimated by insolvency and the closure of many familiar and well-loved shops.”
She added, “There must be some negotiation on the part of landlords and councils to accept that if they are to continue making money from retailers they must accept and facilitate a situation where retailers can make money.
“Treating the retail sector as a cash cow simply doesn’t work anymore and if everyone is to benefit and ensure we have a high street in the future then councils, landlords and retailers must get together and work out a mutually beneficial system.
“The latest insolvency figures indicate that time may be running out.”
A total of 28 retail stores went insolvent in the first quarter, compared with 68 failed stores during 2018.