A BUSINESS leader fears Southampton’s reputation is being damaged by controversial traffic issues after figures revealed nearly a third of the city’s retailers are at a higher than normal risk of insolvency.

Statistics released by insolvency trade body R3 show that 30 per cent of Southampton’s retailers have a higher than normal risk of insolvency, while in the rest of Hampshire one in five business are at a higher than normal risk.

Stewart Dunn, chief executive of Hampshire Chamber of Commerce, is concerned that problems with traffic and parking in Southampton could be putting off shoppers.

Motorists are calling for an end to chaos on the city’s roads. City transport boss Jacqui Rayment has faced calls to resign over her role in roadworks that have brought traffic to a standstill.

Repair work at the Northam Bridge is expected to last up to 20 weeks and is the latest in a line of works causing disruption.

Drivers have reported delays of up to an hour while trying to leave the city via the bridge and a petition has been started to suspend the toll on the Itchen Bridge while roadworks continue.

This follows a double blow to business in Hampshire after 28 staff in Fareham were made redundant by courier firm City Link on New Year’s Eve and high street shop Bank Fashion went into administration.

Daily Echo: Cllr Jacqui Rayment

Cllr Jacqui Rayment

Mr Dunn said: “It is difficult to comment without knowing the comparison figures for other cities in Hampshire but Southampton’s higher than normal risk of insolvency according to these figures could be due to the continued growth of online sales and the threat this poses for a retailer not offering multi-channel retailing.

“Local factors like road works and traffic delays, plus the cost of parking could be challenging Southampton’s reputation as a regional shopping destination.

“It is, however, generally known that very many more UK retailers are considerably worse off this Christmas than last year.

“The increased signs of distress this December are as a result of a squeeze on margins arising as a result of Black Friday and other discount events offered by larger retailers.”

Daily Echo: Stewart Dunn, Newsquest Hampshire General Manager at the Newsquest offices in Test Lane, Southampton.

Stewart Dunn

The national average figure for all UK businesses being at a higher than normal risk of insolvency is at 25 per cent, meaning Southampton is five per cent above average.

Daily Echo: Andrew Watling.

Andrew Watling

Andrew Watling, chairman of the Southern Committee of R3, said: “Owners of struggling stores may use our festive spending habits to make one last attempt to maximise sales, whathever their size, but many faced rent bills in late December and quarterly VAT payments might be higher than normal in late January due to higher sales.

“This anticipated double hit on cash may be a deciding factor for already-struggling businesses and may mean they have no choice but to close the doors.

“Small shopkeepers and larger chains need to be on top of these issues and need to be aware that advice is available from our profession that could mean the difference between the survival and demise of a business.”