The global commercial real estate agency and consultancy says 10 major high street names have reported being in difficulties since the beginning of this year, and calculates that around 12,000 jobs have been lost or are on the line.

John Webber, Colliers head of business rates, said: ‘These figures are as bad, if not worse than the crash of 2008/9 when 16 companies went into administration, 12 in 2008 and four in 2009, and we are only in April now.’

Colliers calculated that together these companies, which include Maplin, Toys R Us, Jamies Italian and Carpetright, saw a rates bill of over £152m last year, rising to £154m this year.

Webber said: ‘Some businesses, particularly those in London saw massive rises in their rates liabilities in 2017, some of which they needed to pay last year, but with the second big uplift coming now in April, in addition to a 3% inflation rise, they are being knocked for six,’ he said.

Colliers also said its research suggests retailers and restaurant operators in less affluent areas who should have seen relief from the revaluation are still not benefitting, due to the fact that it takes four years of ‘transition’ before they are allowed to pay their bills at the new revalued level.

Webber said: ‘The fact that ten sizeable retailers or restaurant groups have gone into administration or CVA since the beginning of the year is extremely worrying. Our figures do not even include all the small independent stores that have gone to the wall too.

‘With big bills landing in April the situation is only going to get worse. Reforming the business rates system won’t solve all the retailers’ and restauranteurs’ problems, but at least it would be a start to show support - not another kick in the teeth for struggling businesses.’

Online growth

Separately, research compiled by the Local Data Company (LDC) for PwC shows the number of new high street stores opening in 2017 fell to 4,083, from 4,534 in 2016,  with the second half of 2017  seeing substantially more closures and less openings than the first six months of the year, reflecting a tough trading environment.

An average of 16 high street stores closed every day in 2017, the second consecutive year the number of closures has risen.

The analysis of the top 500 town centres in Great Britain included 67,157 outlets run by retailers with more than five outlets across the country. It found that overall volumes of activity (openings and closures) have plummeted from a record 13,109 in 2012 to 9,938 in 2017 (-24%), although 2017 activity was up slightly compared to 2016 when 9,964 outlets opened or closed.

Retailers that offer a service such as hairdressers, banks and travel agents saw the biggest increase in closures in 2017, with 583 more closures than in 2016 (-3.2% fall in net change), and accounted for over a third of all closures on UK high streets. These categories have all been affected by the rise of online offerings such as travel booking and estate agents services.

Zelf Hussain, restructuring partner at PwC, said: ‘The end of 2017 was hard for UK retail and we've seen this continue into 2018, with the toughest first quarter of the year for the sector since the recession. We've seen some well known names impacted as they face a perfect storm of issues - a fall in consumer confidence and reduced spending alongside a number of cost headwinds.

‘Many retailers are using restructuring tools as a way to resize their store numbers. Survivors and thrivers will be those who address their cost issues and have a compelling “bricks + clicks” offering to help them meet changing consumer trends and compete with online retailers who don't have the same legacy cost issues.’

Report by Pat Sweet