COVID-19: insolvency of retail and leisure units after March 2020 restrictions UK

To contain the spread of the coronavirus (COVID-19), on March 23, 2020, a number of restrictions were introduced in the United Kingdom (UK). People were urged to stay and work from home. Numerous retailers deemed non-essential had to temporarily suspend their operations. The disruption of activity is a serious threat to the survival of businesses in the retail sector and thus, with a potential knock-on effect on the commercial real estate sector. The asset class most affected was high street retail and leisure, with 42 percent of the units having filed for administration following the lockdown restrictions. Only 19 percent of high street units were classed as essential and could stay open as the restrictions were imposed.