Insolvency trade body the Association of Business Recovery Professionals (R3), has warned businesses in the retail sector that ‘a repeat of last year’s clear-out on the high street’ is on the cards, and more than 20 household names are likely to close their doors for good in the first few months of 2010.

Last year, R3 points out, around 22 well-known high street retailers were declared insolvent.

President of R3, Peter Sargent, said: “Rising unemployment and decreased spending in the lead-up to Christmas, coupled with heightened creditor aggression in the New Year, leaves the retail sector facing another bloodbath.”

An IVA expert for the IVA Forum commented: “Following last year’s high level of insolvencies, we could see another year of high street store closures. However, it’s worth remembering that insolvencies tend to peak after a recession ends, so we could see a brighter outlook for the retail sector once the recession is further behind us.”