According to research by Wilkins Kennedy, 1,287 retail businesses went into administration in England, Scotland and Wales in the last year, up by 12% on the 1,149 insolvencies in the previous 12 months.

Current insolvency levels are now above the previous peak of 1,266 recorded in 2011/12 and higher than the two years prior to that.   

Wilkins Kennedy says that although retail insolvencies have occurred across the sector, with bricks and mortar retailers squeezed by ecommerce players, there have been particular issues amongst small independent convenience stores which are being squeezed out of business by the continued expansion of the big supermarkets.

The analysis suggests that even with an upturn in the economy, independent retailers are likely to continue to face problems, partly because a price war amongst the big UK supermarket groups in response to the growth of foreign-owned discount outlet will hit independent convenience stores.   

However, expectations of increased consumer spending as the economy recovers is resulting in more financial support for retail businesses.  Lending to the retail sector in March 2014 reached £17bn, up from a low of £15.5bn in August 2013 and the highest figure in 27 months since November 2011. 

Cork said: ‘After so many high-profile insolvencies, we hope that the increased lending will give the sector a much-needed boost. Unfortunately banks will be less inclined to lend to smaller retailers.’