Retailers face 'hard Christmas'

The UK's high street stores face a difficult Christmas trading period as fears about jobs and efforts by consumers to cut back spending lead to falling sales, according to recovery specialist Begbies Traynor.

The recovery firm have reported a dramatic increase in the number of retailers which face 'critical financial problems' ahead of the festive season, with its 'red flag' early warning system jumping in the last month.

The red flag process recorded a large increase in the number of retailers encountering critical problems in September, up 37% compared both to August and the average for the previous three months.

"Despite the shake-out that has already seen many thousands of shops boarded up with no prospect of being re-opened any time soon, the latest red flag figures are bad news and suggest that Christmas 2009 could see just as many retail casualties as last year," said Nick Hood of Begbies Traynor.