R3 Midlands Chairman Richard Philpott, a partner at KPMG in the region, said: We often see a spike in retail insolvencies shortly after the traditional Rent Quarter Day
because of the added squeeze on cash flow, and also because of complex rules on administration expenses that incentivise retailers to wait for Quarter Day
to pass before going into administration.
R3's Midlands chairman Richard Philpott, a partner at KPMG in the region, said: "These are the first real growth signs we have seen across the retail sector for a considerable time, but for those businesses relying on a physical High Street presence, the Quarter Day
deadline could prove one burden too many when it comes to remaining competitive with e-commerce.
- when many retailers pay three months rent in advance to landlords - is often the tipping point for insolvency.
- when many retailers pay three months rent in advance to landlords - is often the tipping point for insolvency and previous quarter days
have seen the likes of Habitat, Jane Norman and TJ Hughes enter administration.
Traditional Rent Quarter Days
, which see retailers pay three months' rent in advance to their landlords, often see a resulting spike in retail insolvencies shortly afterwards because of the squeeze on cash flow and complex rules on administration costs.
RETAILERS across the Midlands are bracing themselves for a new financial fallout following last Sunday's Quarter Day
reform could help the struggling retail sector, according to the chair of insolvency trade body R3 in the North East.
THE March rent quarter day
is set to trigger another spate of insolvencies across the business world, a Midland lawyer has warned.
INSOLVENCY experts have warned that another "quarter day
" of hefty rental payments is set to push more retailers over the edge.
It was the nearest hostelry to the Knightlow Cross where on the feast of St Martin, a quarter day
at the end of the agricultural year, villages within 12 miles of the ancient stone paid their dues to the Duke of Buccleuch.
"Some retail insolvencies at the outset of this new year, following the final rent quarter day
of 2012 which fell on Christmas Day, were inevitable as they form part of the retail cycle.
Ross, who is chair of the North East arm of insolvency trade body R3, and a director in the corporate recovery department of the Sunderland office of accountancy firm RSM Tenon, spoke out as commercial landlords were due to receive their latest Quarter Day
payments from tenants.