20 October 2015 - Janet Bird
The number of UK food retailers in serious financial trouble has fallen for the first time in over two years.
Third quarter research conducted by business recovery specialists Begbies Traynor showed 5,002 food retail businesses fell into the category of being in 'significant financial distress', compared to 5,258 in the previous three month period.
The fall is the first experienced since the second quarter of 2013, when there were 2,428 failing food retailers - 51 percent fewer than today.
The number of struggling food and beverage manufacturers, including many businesses and farmers supplying the major supermarkets, also fell during the July to September period. A total of 1,553 companies were found to be in 'significant financial distress', compared to 1,622 in the previous quarter - a fall of four percent. Even with this reduction, however, the number of grocery suppliers in trouble now is 147 percent greater than in quarter two of 2013, when only 628 were experiencing 'significant financial distress’.