SV Partners are a major liquidation firm, recently asked to look after the interests of Australian luxury handbag chains Victoria Station and Kate Hill, have warned that almost 1600 Australian retail businesses are at risk of imminent collapse, including 21 major retailers with $50m+ turnovers and one with $1b turnover.
Challenges for retailers include-
- High rents in capital cities.
- Increased competition from online.
- High labour costs.
- Amazon’s entry into the Australian market.
- Weak wages growth.
- High property prices.
- Household expenses including power.
SV Partners draw their data from a variety of commercially sourced records which indicate those businesses showing vulnerability to loan and debt repayments, cash flow problems, and other adverse financial conditions.
See the full article from Inside Retail here - https://www.insideretail.com.au/blog/2017/08/22/major-retailers-on-the-brink/