Five prominent UK companies have entered administration in the first two weeks of 2020, according to data from KPMG. The accountancy firm reported that the number of firms collapsing into administration across England and Wales rose by nearly 5% to more than 1,400 last year, driven by Brexit uncertainty and economic turmoil.
Construction and retail sectors were particularly hard hit, with 254 administrations in building and construction, up from 216 in 2018. The real estate sector also suffered, with 69 administrations compared to 53 the previous year. High-profile cases in 2019 included fashion brands Jack Wills and Karen Millen, travel firms Late Rooms and Super Break, and greetings card retailer Clintons.
Blair Nimmo, head of restructuring at KPMG UK, said: '2019 was a year characterised by profound political and economic uncertainty, with consumer confidence remaining fragile and companies continuing to bear the brunt of rising overheads and increased costs.' He noted that the general election result in December had created a positive mood, which appeared to have slowed down the level of corporate collapses.
However, last week KPMG was appointed as administrator to the department store chain Beales, threatening 1,300 jobs in the latest blow to the UK high street. The official annual total of administrations for 2019 is due to be published shortly by the Insolvency Service.
