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Daily Mirror
Daily Mirror
Business
James Andrews

Billions of pounds worth of clothes being prepared for 'liquidation sale'

Fashion moves fast, and with most of spring looking like it could be spent trapped indoors or just dressing for a walk or the supermarket it means an awful lot of clothes could be left spare.

As a result, top bosses are getting ready for the mother of all sales when lockdown finally ends.

One insider told the Mail on Sunday : "When shops do eventually reopen it's going to be a race to get rid of stock faster than everyone else."

"People don't realise how fast this industry moves. Every week that goes by is an unfolding disaster for the high street but most people won't see the effects of this until retailers start going bust or when the shops reopen, whichever happens first."

And the scale of the sales could mind-blowing.

(Alamy Stock Photo)

Estimates are circulating that there are more than £10 billion worth of unsold clothes and accessories ready to be discounted already.

And not only are containers currently left unopened at docks - more stock is still arriving, meant to get to shops in time for the summer season and Easter shopping bonanza.

This is now expected to be cleared at cost price – seeing up to 50% knocked off.

The enforced closure has already seen some fashion brands hit hard.

Debenhams today posted notice to appoint an administrator, while rival Laura Ashley has said it will permanently close 70 stores after sliding into administration.

Cath Kidston is also looking likely to appoint administrators.

An estimated 20,000 stores will be lost by the end of the year, according to figures from the Centre for Retail Research, a massive jump on the 4,547 that closed in 2019.

Weeks of lockdown will lead to 235,000 jobs being lost, up from 93,000 in 2019, which was the worst year for retail for a quarter of a century.

The research suggests the effect of the pandemic on Britain's town and city centres will hit the industry for the rest of the year.

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