UK’s Distressed Businesses List 2023

• An estimated 20,000 jobs lost from big-name brand closures
• 649 banks close, taking account access away from those without internet
• Over 1,000 branches across 40 household names have disappeared from high street.

 

2023 has been a particularly difficult year for UK businesses, with several socio-economic headwinds either raising operating costs or slowing demand. Companies still reeling from the COVID-19 pandemic have had to face soaring utility bills, higher rates of inflation, rising interest rates, and a cost-of-living crisis that’s seen the public tighten their purse strings.

As such, the much-reported ‘death of the high street’ accelerated at pace and saw several household names disappear from our shopping centres. Some, such as Lloydspharmacy, have vanished completely, while others, like Paperchase, have returned in a different form.  Many though, have simply slashed the number of stores they operate, leaving yet more holes in a high street that has struggled to find the answer to dwindling footfall.

 

Impact on employment numbers

An estimated 20,000 workers were made redundant from just the 92 household names listed below. Freight business, Tuffnells alone, accounted for around 2000 of those, as it closed 33 depots across the UK. Redundancy numbers such as these, without even considering the scores of small businesses that undoubtedly had to let employees go too, will have only compounded the problem of slowing customer demand.

 

Retail and hospitality hit hardest

40 high street brands either closed or scaled back their operations this year, with most lamenting the expense of running a bricks and mortar store. More than 1,000 big retail chain branches closed across the UK in 2023 in widespread cost-cutting measures.

The hospitality sector has been struggling with operating costs and the cost-of-living crisis forcing the public to cut back on non-essential spending. Over 1,200 chain eateries and other hospitality centres closed their shutters for the final time this year, with an estimated 5,000 jobs lost.

 

Banking and publishing continue on a downward spiral

The publishing sector has seen its figures steadily dwindling for years now. The public appetite for print publications is showing no signs of improvement, and now publishers also have to contend with more expensive publishing costs. It’s a cocktail for disaster within the struggling sector, with several large titles folding over the course of the last 12 months.

Things aren’t quite as dire over in the banking industry. Compared to the other sectors appearing in this list, their outlook seems relatively positive, but aggressive branch closures continue as the public steadily move across to online services. 649 branches closed across 2023, making it difficult for those without internet services to access their accounts.

 

A period of survival and evolution

Rick Smith, Managing Director of Forbes Burton, commented that “the current economic climate has accelerated the culling of some businesses that had struggled to adapt to a changing market. Retail companies in particular have found the public’s switch to online shopping difficult.

“After years of expansion and growth, many companies in the retail sector have found themselves saddled with large premises accruing huge rents and workforce costs. They’ve found that these sites are no longer viable after the ecommerce boom, and we’re still seeing a hangover from that in these figures.

Those that evolve their businesses to meet the needs of today’s customer have a far better chance of survival. With multiple external factors making 2023 a harder time than ever to run a business, only those with the deepest pockets or the brightest ideas will survive”.

 

Our distress list documents 95 big brands that have either dissolved, gone into administration, or simply closed branches or made redundancies in an effort to cut costs this year. Some of these companies may not be struggling as a whole, but have certainly identified sections of their business that are.

 

 

Retail

 

Argos

Sainsburys-owned Argos has seen more outlets close this year in a gradual move away from the high street. Plans to close 100 branches over this year and next show no signs of abating, with many branches being absorbed into nearby Sainsburys stores.

 

B&Q

The popular DIY retailer closed eight mini shops this year. Each of these were situated within ASDA supermarkets. The ASDA-hosted stores were launched in 2020 and held a number of DIY products as well as the opportunity to pick up items delivered from bigger stores.

Its parent company, Kingfisher, has however announced plans to cull 60 B&Q branches over the next two years. At the same time, Kingfisher’s other chain, Screwfix is scheduled to open 60. It’s hoped that staff affected by any B&Q closures will be able to transfer to Screwfix and other parts of the business.

 

Book Depository

The Gloucester-based bookseller was closed in April by its parent company, Amazon as a part of wider cost-cutting measures across the business.

 

Boots

The high-street pharmacy chain announced in June that 300 of its branches would be closing. The branches chosen were said to already be in close proximity to others that are able to absorb their staff. While many have already closed their shutters, closures are still ongoing.

 

Cath Kidson

March saw the fashion brand, known for its floral designs, acquired from administrators for £8.5m. New owners, Next PLC, had already hoovered up other struggling companies, Joules and Made.com in 2022.

 

Clarks

Despite opening two new stores this year, the 195-year-old footwear chain also closed eight others in a reported shift toward a more-online model.

 

Clintons

The greetings card retailer is looking to close 38 of its 225 UK stores in a bid to stave off a collapse fuelled by insolvency. A restructuring plan is said to have made the business safe for at least another twelve months.

 

The Entertainer

Despite posting sales growth outperforming their competitors, The Entertainer has openly said that it “remains cautious” about the short term. That caution was shown in three UK closures this year.

 

H&M

A “rapid change in customer behaviour” was cited as the reason behind H&M’s decision to close a handful of UK branches this year. Hartlepool, Burton, Maidenhead and the Isle of Wight all lost stores in 2023.

 

Halfords

2023 saw five Halfords stores fall under the axe. The year begun for the vehicle-based retailer with a 20% slump in its share price, which CEO Graham Stapleton attributed in part to a decline in bicycle sales.

 

Homebase

Since inheriting a network of almost 250 stores in their 2018 takeover, Hilco Capital has closed 93 Homebase stores. More followed this year in locations such as Plymouth, Newport, and Banbury.

 

Hotter Shoes

Administrators sold the popular footwear brand to WoolOvers Group for £6.7m. The business found itself owing £11.1m to creditors, with more than 20 unsecured creditors claiming six-figure amounts.

 

House of Fraser

Ailing department store House of Frasers has been steadily shedding branches over the last few years, and 2023 was no different. After being bought out of administration in 2018, the retailer has seen little uplift in fortune, with owner, Mike Ashley, admitting a year later that buying the business had been a “mistake”. The absorption of some closed Sports Direct Branches into new department stores may hint at the shape of their future.

 

Hunter Boots

Favourite of the royal family and festival-going celebrities, premium welly manufacturer Hunter’s roots go back to 1856. The company was the trusted supplier of footwear for Britain’s soldiers during WW1, but unfortunately couldn’t fight off administration this year. Recently acquired by US-based Authentic Brands Group, Hunter cited the pandemic, supply chain issues, and “unseasonal weather in the US” (their largest market) as the main drivers for their administration.

 

Hype

Hype/Just Hype, was bought out of administration in spring this year by Lux360 and JHB2C in a joint deal. The children’s clothing and backpack brand found itself hindered by excess stock after aggressive expansion during 2020. All 82 jobs were saved by the acquisition.

 

Iceland

The budget food retailer has closed around 18 stores this year, though a spokesperson for the brand suggested growth overall. “We typically open more than 20 new stores each year”, the spokesperson explained, adding that “at the same time, we continually review the retail experience offered to our customers and have always made a small number of store closures every year”.

 

In-Time

In a shock to customers and employees alike, the watch repair chain abruptly closed all of its stores just a few days prior to Christmas Day last year. Luckily, it was acquired by Timpsons in January, saving 110 jobs in the process. 21 sites remain, down from a previous 50 nationwide branches.

 

M&Co

After falling into administration at the tail-end of 2022, M&Co swiftly set about closing down all of its 170 stores. AK Retail acquired the brand and IP, and has since set up the business as an online-only retailer.

 

M&S

High streets nationwide have seen seven Marks and Spencer stores closed.  While this is undoubtedly bad news for those who have lost their jobs, the broader outlook for the business is much brighter. “We recently announced that we are investing £480m in bigger, better stores across the UK” a spokesperson revealed, with 20 new stores proposed to open next year.

 

Middletons Mobility

The first half of 2023 saw Middletons close all 16 of its branches. Rising operating costs and difficulties with its supply chain were mentioned as factors in its demise.

 

New Look

19 branches closed its doors this year. A spokesperson for the fashion retailer, which first opened its doors in Taunton in the 1960s, suggested that the closures were part of “the normal course of business”, and that they plan to open several new shops in the new year.

 

Next

Next announced plans to close 11 stores by the end of 2023. Six of those affected were not expected to meet their sales targets, while others are either being redeveloped or had their leases expire.

 

Oddbins

All of the wine seller’s remaining UK stores have now been closed, with the business pivoting to an online-only model. Oddbins’ financial woes have been well-documented over the years, with administrators being appointed in both 2011 and 2019. While the change to an online retailer makes sense, it’s a shame to see its high street presence dwindle from a high of 278 stores to zero.

 

Paperchase

Beloved stationery chain, Paperchase had become a staple on British high streets, but found itself in administration at the start of the year. No buyer was found for its 106 stores or its website, but its brand and IP were acquired by Tesco, who now stock Paperchase-branded products in store.

 

Planet Organic

The “UK’s first organic supermarket” chain was bought out of administration. With 10 London stores and 200 jobs saved in the process. Unfortunately, four stores were less fortunate, seeing 64 workers lose their jobs.

 

Poundstretcher

After starting the year announcing plans to open 50 new stores, the budget retailer saw 13 of its stores close across the UK. The business exited a compulsory voluntary arrangement to pay back creditors late last year.

 

Shoezone

The low-cost shoe store closed 11 branches this year, with plans to close the shutters on eight more. As a whole, however, Shoezone is hoping to grow by pivoting to a more ‘big box’ model that offer more stock and a bigger range of products.

 

Snowdrop Independent Living

After failing to hit its revenue forecasts, Snowdrop Independent Living ceased trading in January. Seven stores across the country were closed, with 37 jobs lost.

 

Sports Direct

A number of Sports Direct branches closed this year, although a handful are due to return under a different guise. After Mike Ashley’s takeover of House of Fraser, the sports retailer is set to reappear in some new Frasers department stores. These department stores will see Sports Direct offerings available alongside those of the Frasers Group’s luxury arm, Flannels.

 

Tesco

After last year’s decision to scrap the failed sister-supermarket chain, Jacks, Tesco has now closed a handful of Tesco superstores too. The grocery giant still remains one of the UK’s largest companies however, and has plans to open more Tesco Express stores.

 

Thought Clothing

Formerly Braintree Clothing, Thought-branded garments are stocked in John Lewis, Sainsburys, and several independent outlets. Their efforts to find a buyer have so far proved unfruitful, and they find themselves in administration while they continue trading. Over 20 staff have been made redundant.

 

Tile Giant

Two separate buyers were able to save 300 jobs in total when Tile Giant entered administration, but 13 stores still fell by the wayside. Among those affected were branches in Leicester, Grimsby and Leeds, with the closures costing 43 employees their jobs.

 

TK Maxx

The American retail giant opened three new stores this year, but also closed three others. One TK Maxx store, and two Homesense stores (its subsidiary brand) were affected.

 

Vashi

April saw jewellery business, Vashi go bust. One of their retail landlords, Canary Wharf Group issued a winding-up petition against the upmarket retailer. Four stores and 200 employees were affected by the closures, but the website was acquired by Queensmith in May.

 

Victoria Plumb

An Ernst & Young-led administration saw Victoria Plum sold in a pre-pack deal to AHK Designs. Cashflow had become a problem for the bathroom retailer after soaring freight costs and a decrease in customer spending dented their day-to-day profitability.

 

WH Smith

With their focus moving toward airports and train stations, plus a potential expansion into America, a WH Smith spokesperson said they have no plans for any new UK stores, and actually closed three over the course of 2023.

 

Wiggle

The online bike retailer, Wiggle found itself in administration during Q4, echoing the struggles of its parent company, Signa. 105 redundancies have been announced, as the business looks for a buyer. Halfords, Frasers, and Next are all rumoured to be interested.

 

Wilkies

The fashion retailer, established in 1898, saw its parent company enter administration this summer. This meant that almost half of its stores were closed during the latter half of the year. The rest were sold to Wikies Trading Limited, who were able to save 55 jobs.

 

Wilko

Wilko’s woes were among some of the most-publicised retail collapses of 2023. Shoppers were buoyed by news that the well-loved chain would return after a joint purchase by B&M, Poundland, and The Range. Poundland bought 71 stores to refit as their own outlets, B&M acquired 51 for the same purpose, and The Range took on the Wilko brand, website, and IP.

 

The Works

Three branches have closed over the last year, with Hitchin, Weston, and Coulby Newham’s shops all hanging their closed signs for good. The book, stationery, and craft supplier still continues to operate over 500 stores in the UK.

 

 

 

Banking

 

Bank of Scotland

Bank of Scotland is owned by Lloyds Banking Group, and as such, is set for a similar fate to its parent company when it comes to its branches. 16 sites were closed this year, with a similar amount due to close their doors in 2024.

 

Barclays

Barclays are no different from their rivals in their movement toward online banking. Over 180 UK branches closed in 2023, with around 35 already scheduled for next year.

 

Halifax

Another Lloyds Banking Group subsidiary, Halifax closed 52 banks this year, with around 45 scheduled to close in 2024.

 

HSBC

From having 590 branches across the UK in 2021, HSBC is now at around 320. The high-street banking giant announced earlier in the year that it was setting out to close 114 branches.

 

Lloyds Bank

Lloyds have closed over 80 branches this year, with plans announced recently to close around 60 next year too.

 

Metro Bank

This challenger bank sets itself apart from rivals by focusing on in-branch services. Unfortunately, it’s now set to cut around 800 jobs and pare back their opening hours from their current seven-day-a-week operations. As of writing, they’re currently in talks to sell their £3billion mortgage book to Barclays.

 

Nationwide

In the context of their rivals in the banking sector, Nationwide’s two branch closures looks relatively healthy. Since those closures, the bank has sought to differentiate itself from its competitors by declaring no plans to close any of their remaining branches, at least until 2026.

 

Natwest

The banking sector has seen scores of bricks and mortar premises disappear over the last few years, and Natwest is no different. Over 140 branches closed this year, with plans to close another 32 already mooted for next year. A spokesman credited the public’s move to online banking as the main driver.

 

Santander

Seven Santander sites had to close this year, in prominent spots such as Bluewater, Meadowhall, and Manchester Piccadilly.

 

TSB

Nine TSB branches have closed over the course of 2023.

 

Ulster Bank

The Northern Irish bank has permanently closed the shutters on 10 sites this year.

 

Virgin Money

39 branches closed this year, accounting for almost a third of all Virgin Money’s sites.

 

 

 

Food, Drink, and Hospitality

 

Be at One

Both Be at One and Slug & Lettuce are pub chains owned by Stonegate, who set wheels in motion to sell off up to 1000 of their pubs across the UK.

 

Brewdog

After several pub closures last year, the harsh economic climate for those in the drinks and hospitality industry has led to more closures for Brewdog this year.  Sites in Leicester, Brixton, Clapham and the Hawkes Cider Taproom in Bermondsey all fell in 2023, with Brewdog owners citing “rampant inflation, soaring utility costs, and relentless cost-of-living pressures” as factors. All affected staff were offered replacement roles within the business.

 

Byron Burger

Having once being valued at £100m, Byron Burger was bought out of administration by Tristar foods in January for just £856,000. While some restaurants were saved, eleven weren’t so lucky, with 200 jobs lost. Nine restaurants remain across the UK.

 

Carlsberg Marstons

A break clause in a tenancy agreement prompted Carlsberg Marstons to close down their Wychwood Brewery and consolidate their brewing elsewhere. The brewery, known for its production of Hobgoblin ale and other beers, closed in November.

The pub chain arm of Marstons also put 61 of its pubs up for sale, with soaring costs mentioned as a factor in its decision.

 

Chiquito

Falling within The Restaurant Group’s umbrella, the Mexican restaurant chain has seen a similar 2023 come to pass as Frankie and Benny’s below. Four branches closed this year, bringing their number across the UK down to 18.

 

Cineworld

The cinema chain originally announced that its UK branches would carry on as normal after filing for administration this summer, but has since had to close a couple of sites in Chesire and Bristol. The rest of its branches remain open.

 

Cooplands

A spokesperson for Cooplands responded to the closure of nine branches by explaining that “following an in-depth review of the business, we are making some changes to both our retail and bakery operations, to help better position the business for the long term and sustainable growth”.

 

Empire Cinemas

Like its rival, Cineworld, Empire Cinemas also fell into administration this summer. Six cinemas were closed, and 150 jobs were lost almost immediately, with eight remaining open so far.

 

Frankie and Benny’s

The Restaurant Group closed 12 Frankie and Benny’s branches this year, and has since been in talks with private equity firm, Apollo Global Management about a possible sale of their entire portfolio for £506m.

 

Greene King

The UK pub giant closed several pubs this year, with sites in Portsmouth, Basingstoke and Great Barton affected.

 

James Villas

James Villas owner, Awaze decided to close the company and stopped taking bookings at the end of October. Solmar Villas, a rival based in Burton-on-Trent, has acquired more than 450 ex James Villas properties since.

 

Le Pain Quotidien

Bakery chain, Le Pain Quotidien fell into administration during the summer, and closed all but one of its branches. Kroll advisory stepped in as administrators and highlighted the “pressures on parts of the hospitality and casual dining sector” as one of the chief drivers. The St Pancras Station outlet remains as the sole UK branch.

 

Neat Burger

The Lewis Hamilton and Leonardo DiCaprio-backed burger brand will close four of its eight London eateries before the end of the year. A spokesperson explained that the plant-based restaurant closures are part of a “strategic step in our broader plan for future expansion”. The four affected sites were chosen due to “a natural decrease in footfall” brought about by a “shift towards hybrid work”.

 

Pontins

After a Which? Report ranked Pontins as the worst holiday chain to stay with, two large closures have been revealed. An official announcement on X (formerly Twitter) in late November announced that the Prestatyn and Camber Sands holiday parks have closed with immediate effect, and that those with bookings would be refunded.

 

Slug & Lettuce

Multiple pubs went up for sale this year as part of the same cost-cutting measures Stonegate implemented on Be at One.

 

Wetherspoons

After already closing 29 pubs, a July statement revealed that Wetherspoons planned to shut a further 22 sites in efforts to consolidate the business. These cost-cutting methods have so far paid dividends for the low-cost pub chain, with the group reporting profits for the first time in three years.

 

 

 

Publishing

 

Big Issue North

The Big Issue’s sister publication has ceased printing after 30 years. Produced in Manchester and focusing on more regional stories, Big Issue North struggled with reduced footfall in town centres and the rising costs of publishing.

 

The Countryman

Something of a UK institution after its first issue was published in 1927, The Countryman magazine folded toward the end of the year. Dalesman Publications explained that “print and paper costs have soared by 70 per cent, postage by 26 per cent, and there has been a steep decline in advertising revenue”.

 

DC Thomson

The Dundee-based publisher behind favourites such as The Beano, People’s Friend, and Puzzler, has had to shut down 26 of its titles. In an effort to “reshape its portfolio” to plug a £10m gap, the publisher unfortunately had to shed more than 300 employees. Among the publications lost are Animal Planet, Shout, and Living.

 

Reach

The newspaper industry has been in flux ever since internet access became commonplace. Outside of its flagship publication, The Mirror, the Reach group have an extensive portfolio of regional newspapers and websites that has seen a significant drop in audiences. 450 jobs are scheduled to go, along with the closure of multiple news sites. A merger of print and digital teams is on the horizon.

 

 

 

Sport

 

Heart of Midlothian

Scottish Premier League team, Hearts entered administration in June, and started the following season with a 15-point deduction as a result.

 

Jersey Reds

Jersey Reds ceased trading with several players’ wages unpaid. The demise of several high-profile teams within a short space of time has sent shockwaves throughout UK rugby.

 

London Irish

After the collapse of Worcester Warriors and Wasps in 2022, London Irish became 2023’s first rugby club casualty, but it wasn’t to be its last, as Jersey Reds soon followed suit.

 

W-series

Launched as a female-only motorsport championship in 2018, the series cancelled its 2023 season after sponsorship couldn’t be attained. An administration revealed debts of £23m owed to over 150 creditors.

 

 

 

Other

 

Flavourly

Ryan O’Rorke, founder of the online beer retailer, made a splash by appearing on BBC’s Dragons’ Den, failing to secure a deal, and eventually crowdfunding his business instead. Eight years later, the company was acquired out of administration, and absorbed into the Beer52 subscription service.

 

Ideal World

Shopping channel, Ideal World entered administration in August, after disappearing from our screens the month prior. It has since returned on Virgin Media after it was bought by TJC.

 

The Ince Group

With a history spanning 157 years, The Ince Group fell into administration in April, was bought by Axiom DWFM a fortnight later, and finally collapsed at the start of October.

 

Jacobs Douwe Egberts

The Dutch-American coffee company identified its processing plant in Banbury, Oxford as its “least cost competitive” site in its network. The processing element of the factory is being removed, and will focus instead on packaging. As a result, around 280 jobs are due to be lost.

 

Johnson Matthey

The FTSE-listed autocatalyst manufacturer is in the process of a “right-sizing of the overall company headcount”, and announced plans to cut around 600 support function jobs in an effort to save £150m in expenses per year by 2024/2025. This news came shortly after a separate announcement revealed the closure of four manufacturing sites abroad, costing 900 additional jobs outside of the UK.

 

Lloydspharmacy

In 2022, Lloydspharmacy held 1,275 pharmacies across the UK. On 23^rd November, 2023, they announced that they had sold all of those branches bar four that had closed. The vast majority will continue to trade under different stewardship, but Lloydspharmacy has now disappeared from the high street.

 

Morton’s Rolls

Supplier to Aldi, Lidl, and M&S, the large Scottish bakery ceased trading back in March, but was soon bought out of administration by PVL, an investment firm later the same month.

 

People Tree UK

The UK arm of ethical fashion brand, People Tree was put into liquidation this year, with a reported £8.5m owed to a mixture of suppliers, customers, and its redundant staff.

 

Pharmaserve

Runcorn-based Pharmaserve saw 58 jobs saved by a part-sale of the healthcare firm. Specialising in respiratory equipment, administrators oversaw the procurement of the business by Noveayr Respiratory Services

 

Pfizer

The American pharmaceutical juggernaut made sweeping changes to its Kent site in Sandwich. 500 redundancies have been announced there as part of a $3.5billion cost-cutting plan. The drugmaker’s share value had dropped by over 40% earlier in the year.

 

PwC

Despite their status as one of the ‘big four’ accounting and consultancy firms, PwC revealed plans to cut up to 600 jobs as they attempt to ‘right-size’ the business. Among the reasons mentioned, weaker growth, rising costs, and a drop in employees choosing to leave. PwC normally expect more departures to rival businesses and startups, but a drop in job vacancies has stymied this figure.

 

Raleigh

One of the best-known bicycle brands in the UK, Raleigh, has announced that it is to close its parts and accessories business in a range of cost-cutting measures. The bike manufacturer has also declared that its new Nottingham experience centre is to close after only opening in November last year.

 

RM PLC

RM PLC, an Abingdon-based technology and education resource supplier, has made the decision to close their Consortium business after an “extended period of underperformance”. The provider of educational supplies to schools will close at the end of the year.

 

Smile Direct Club

The US-based dentistry firm suddenly ceased operations in December after filing for bankruptcy in the US. The closure affects hundreds of UK customers anxiously waiting for refunds, as well as those who still had check-ups to complete. Their lifetime guarantee has also been declared null and void. It’s not yet known how many jobs have been lost due to the closure.

 

Squibb

The demolition specialists had originally negotiated longer payment terms with HMRC for £4.4m in tax arrears. An application for a further extension was rejected this year before the 75-year-old business was wound up in December. At time of writing, HMRC are looking to claim £16.5m from the construction firm in an alleged tax fraud issue. Squibb’s director refutes all allegations, and is looking to appeal.

 

Thames Water

Risings costs and falling profits have prompted the UK’s largest water and wastewater service to make 140 workers redundant. A spokesperson for the business said it had been an “extremely challenging year”.

 

Tuffnells

UK freight company, Tuffnells entered administration in the summer. Over 2,000 employees were made redundant across 33 depots.

 

V-Bites

Heather Mills-backed vegan food manufacturer, V-Bites, appointed administrators on December 11th. 24 staff members have been laid off, but they continue to trade in the hope of finding a buyer soon.

 

WeWork

Once heralded as the US’s most valuable startup, WeWork filed for bankruptcy toward the final quarter of 2023. The office space provider had already been steadily offloading its UK properties over the last few years, but those businesses using their remaining properties find themselves in a position of uncertainty now. WeWork currently operate 36 sites across London, as well as several others in Manchester, Birmingham, Edinburgh and Cambridge.