Nearly 140 retailers are in a "critical condition"

Nearly 140 retailers are in a "critical condition" despite Christmas being their peak trading time, business recovery firm Begbies Traynor has said.

Its UK business solvency survey found 13,700 more firms were in distress, a 35% rise in the quarter to December.

It said many could struggle to meet their quarterly rent payment, due on Christmas Day.

Begbies Traynor has predicted a rise in the number of both national and regional retail insolvencies in 2013.

The report suggested the worst affected retailers include specialists in books, news and stationery, where distress signals were 85% higher on the previous quarter.

Online retailers, supermarkets and shops selling decor and household goods have meanwhile, seen sales figures improve.

Traders of furniture, lighting, home decorations, hardware and paints have seen a combined 13% fall in distress levels in the last three months, as homeowners decide to "improve, not move".

Julie Palmer, partner at the company, said many consumers were browsing in high street stores before finding the product they want for a better price on the internet.

Pharmacies, personal care outlets, and off-licences have also seen their distress signals rise.

Begbies Traynor said this was thanks to consumers being more careful with what they spent their money on.