The number of business cuts in the United States and Canada reached 251 in the second quarter of 2015, compared to 241 in the second quarter of 2014. Since the beginning of this year, to the present day, the termination of business - this includes bankruptcies, consolidation (sales / mergers) and companies that have simply ceased operations - increased by 12 percent year on year, from 485 to 545.
The statistics for the second quarter reflect the continuation of the trend, which manifested itself in full in 2014, when the number of business termination increased by 32 percent year-on-year.
During the JBT Internet conference held on Wednesday to discuss the industry's new achievements, President Dione Kenyon cited many of the reasons for the industry's reduction earlier: aging owners who decided not to continue the business and the inability or lack of desire to make the changes necessary to In order not to lag behind in this rapidly changing world.
She also said that some of the recent cases of closure of retailers may be the result of a lack of cash due to gold buyback, which for several years "helped mask the deeper problems that jewelers have," including obsolete stocks and the fact that they are not Adapted to the new technology.
JBT data showed that from the number of closed businesses, the majority prefer to cease operations than to consolidate or file for bankruptcy.
In North America, a total of 216 retailers, wholesalers and diamond manufacturers ceased operations in the second quarter of 2015 compared to 185 in the second quarter of 2014. From the beginning of the year to the present day, the number of businesses that simply closed, increased by 28 percent.
At the same time, the number of consolidations this year has decreased by 43 percent. Kenyon said that although it seems that the deals are "still concluded" behind the scenes, but not so many of them were implemented this year.
The number of bankruptcies, in fact, is not growing. So far in 2014 there were 21 bankruptcies, compared to 20 at this time last year. Kenyon said that this is a continuation of the trend, observed for some time - very few companies tend to spend money on the bankruptcy procedure.
Other main data for JBT for the second quarter include the following:
- The number of new jewelry businesses this year in the United States and Canada reached 152, which is less than 159 at this time last year;
- The total number of registrations for JBT (including retailers, wholesalers and diamond manufacturers) for North America as of the end of the second quarter of 2015 fell 3 percent year-on-year to 29,607 compared to 30,392 in the second quarter of 2014; and
- The number of claims for recovery of debts received by JBT (593) decreased from the beginning of this year, although the average amount of claims ($ 8,728) slightly increased. Kenyon defined the industry's credit data as "OK" (good) during a web conference on Wednesday; Not all businesses make payments immediately or without difficulty, but this is not yet a situation when it is impossible to get a payment at all.
http://www.nationaljeweler.com/independents/retail-surveys/Industry-shrinkage-trend-continues-in-Q2-9642.shtml
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