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  • Insolvency review - Week 19

     

    RCM Weekly review - May 2019 - Week 19

     

     This week: UK economy rebounds to grow 0.5% in first quarter, however Personal insolvencies up 16% year-on-year. Fashion chain Select falls into administration.

    10 th May 2019

     Select falls into administration

    Women’s fashion chain Select falls into administration putting 1,800 jobs at risk

    Women’s fashion chain Select has fallen into administration putting upto 1,800 jobs at risk. Select operate 169 stores across the UK and their target market is women aged between 18-45. The chain is owned by Turkish entrepreneur Cafer Mahiroğlu, who himself bought Select out of administration back in 2008.

    As recently as Last year, Select had entered a company voluntary arrangement (CVA) to negotiate rent cuts of up to 75% from its landlords.

    Select's administrators said stores would continue to trade while all options for the business were considered. Administrator Andrew Andronikou said today "We will continue to trade Select whilst we assess all options available to the business, with the aim of achieving the optimum outcome for all stakeholders. Options include a sale of the business, in addition to entering into discussions with those parties who have already expressed interest in acquiring the business."

    https://www.bbc.co.uk/news/business-48193336


    10th May 2019

     GDP Grows by 0.5% in last quarter

    UK economy rebounds to grow by 0.5% in the first quarter.

    The ONS has released GDP monthly estimate, UK: March 2019.

    The UK economy strengthened in the first three months of the year with growth of 0.5%. This is an improvement on 0.2% growth in the previous three months. The figures were helped by the by the strongest quarterly performance for manufacturers since 1988, with factory output up by 2.2%.

    Recent business surveys had shown that manufacturers were stockpiling goods at unprecedented levels as they had been fearful of the impact from a no-deal Brexit. Therefore, maybe the headline figure is not what it appears to be.

    Growth in Quarter 1 (Jan to Mar) 2019 picked up from the subdued growth in Quarter 4 (Oct to Dec) 2018

    UK GDP 2017 to 2019 Q1

    Source: Office for National Statistics – GDP monthly estimate

    Read the Full ONS report here:
    GDP monthly estimate, UK: March 2019


    30th April 2019

     Personal insolvencies up 16%

    Personal insolvencies up 16% year-on-year.

    The Insolvency service have released Individual insolvency statistics, Q1 January to March 2019

    Total Personal insolvencies fell in the first quarter of 2019 to 31,527 from an eight-year high in Q4 of 2018 of 34,287. According to The Insolvency Service, the fall was largely driven by a decrease in the number of individual voluntary arrangements (IVAs), though both debt relief orders (DROs) and bankruptcies fell slightly from Q4 2018. In total, there were 115,319 personal insolvencies in 2018, which is 16% higher than for 2017.

    Read the Full Insolveny Service report here:
    Individual insolvency statistics, Q1 January to March 2019


     

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