The number of retail chains going bust will increase by a quarter next year, a report by BDO Stoy Hayward has predicted. Sunday Telegraph

The consultancy forecasts that 1,300 high street chains will fail in 2008, compared with 1,050 this year, an increase of 24%.

BDO also predicts consumer spending will grow by just 2.1% next year, almost half the average annual growth of 3%-4%.

Interest rate rises and the poor weather are likely to compound the problems of retailers that have already led three chains – Kwik Save, Hawkshead and Fopp – into administration this month.