Main menu

GVA completes sale of …

The Midlands office of le…

Featured

Mitsubishi Electric Eu…

GBR Phoenix Beard has sec…

West Midlands

Black Country bedroom …

One of the country’s top …

West Midlands

Swedish company opens …

An expanding Swedish auto…

West Midlands

Sir Chris Evans to ch…

Potential entrepreneurs a…

Wales

Major industrial prope…

RMW Knight, with joint ag…

South West

Modern office building…

Ground floor office space…

South

Mazars advises on Prot…

Corporate finance adviser…

West Midlands

New Year start for roa…

Marking the physical star…

West Midlands

2014 to be the highest…

Knight Frank’s latest sta…

Wales

Second award is capita…

A leading Birmingham busi…

West Midlands

Royal Bank of Scotland…

An Ask restaurant investm…

Wales
«
»
Second Menu
Commercial News MediaWest MidlandsThe dangers of ‘window dressing’ for retailers

The dangers of ‘window dressing’ for retailers

Under-pressure fashion stores may be tempted to “window dress” their figures, an expert has warned.

John Kelly, regional managing partner at the Birmingham office of corporate recovery specialists Begbies Traynor, said the sector was directly in the firing line of the economic downturn as consumers reined in their spending or shopped online.

He urged the fashion world to be realistic and face up to their problems.

“Buying market share and price cutting below cost price rarely work in the long run. As you may expect, it can often increase the risk of failure.

“That said, keeping and valuing obsolete fashion stock may support a balance sheet but will eventually be found out. Cash is still king and much better to ‘move on’ and realise the cash value.

“Fashions rarely return in the short term – as my wardrobe will confirm!” said Mr Kelly.

According to Begbies Traynor’s most recent Red Flag Alert benchmark, general retailing is facing a 26 per cent jump in critical financial distress annually.

Troubles on the High Street have in recent months claimed female fashion group Peacocks, affiliated company Bonmarché, lingerie chain La Senza, gifts retailer Past Times and outdoor supplier Blacks.

Mr Kelly said: “I very much doubt we have seen the last of the blood-letting. With the economy flirting with a double-dip recession trading won’t be getting any easier in a hurry.

“Trying to hide the pain will in the end only make the situation worse. My advice would be – seek help at the first sign of trouble.”

Comments are closed.

Latest News

Get in touch

Contact Commercial News Media for more details of our services, information about our website and emails or advertising prices.
Telephone: 01278 760003
E-mail: glen@commercialnewsmedia.co.uk