Proactive Investors - Retailers like Marks and Spencer Group PLC (LON:MKS) and J Sainsbury PLC (LON:SBRY) are some of the top FTSE 100 fallers on Monday after new research highlighted the soaring rate of insolvencies in the industry.
There have been almost 20% more insolvencies in the last twelve months, Mazars data showed, as the effect of higher interest rates hits high streets.
Some 2,200 retailers went into administration in the twelve months to the end of January, up against 1,843 recorded a year earlier.
As the Bank of England continued to hold interest rates at 5.25% since August, the burden on debt-laden businesses has been found to have devastating effects.
Rebecca Dacre, a partner at Mazars, said: “We are unlikely to see the retail sector trading comfortably until interest rates start to fall.”