Seven retailers fell into insolvency every day of the first quarter of 2009 on average amid the worst recession for 35 years, according to accountant PricewaterhouseCoopers (PwC).
PwC said the number of retailers collapsing between January and March increased by 60 per cent on last year to 705, reports The Independent .
PwC believes that, while the first quarter is likely to mark the peak of retail insolvencies during the recession, insolvencies would continue to be rife as businesses deal with rising costs, continued debt with decreased credit backing, and falling profits.
The first-quarter insolvency figure is up 24 per on the 569 chains which collapsed in the final quarter of 2008.
The UK's gross domestic product is the worst since 1979 as figures for the first quarter fell by 1.9 per cent.
Andrew Garbutt, retail director at PwC, said: “Those with an inappropriate capital structure or a poor proposition will struggle to survive.”
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