Struggling retailers are likely to return for a “second bite” of store closures or rent cuts, according to an analysis warning that a large amount of retail space is doomed to be obsolete.
The proposed company voluntary arrangement by Arcadia, the owner of Topshop, which will be voted on by landlords next week, is the latest in a string of insolvency deals made by high street chains from Mothercare to House of Fraser to Carluccio’s.
However, Andrew Hughes, head of European general retail at UBS, the investment bank, said: “There’s nothing to stop companies coming back for a second bite.”
