Furthering the decline of the UK high street, Tie Rack has announced this week that it plans to close 44 of its UK stores, putting around 200 jobs at risk.
With the growing pressure on high street retailers, as consumer disposable income remains low, the retailer has launched a closing down sale at its high street stores. It is confident that it will be able to continue to operate its airport outlets.
After recent financial results showed a loss of £7m in 2013, the fierce high street competition seems to have won. Although a leading outlet in the 80s and 90s, many analysts have been quick to point out that the retailer has failed to move with the times, with an outdated brand that fails to connect with young people today and little online marketing.
In a statement released by the company, Tie Rack has blamed a prolonged period of decline for the closures. The group that operates the retailer, The Fingen Group, are believed to have asked accountants Grant Thornton to look for prospective buyers of its 30 overseas stores but will maintain Tie Rack’s online presence.
With the high street losing the war against online sales, only after this Christmas may we start to see its true future. If your company or a client is struggling with the current economic outlook then get in touch for individual advice.