North East businesses facing risk of insolvency increases

As you may have noticed from reading some of our most recent blog articles, insolvency has hit the headlines several times in the past couple of months.

First came the news that the amount of UK businesses facing insolvency had grown significantly throughout 2017, then the Carillion collapse, followed finally by clothing retailers suffering from a rise in liquidation rates.

This trend is unfortunately not showing any signs of stopping, as it was announced last week that the number of North East-based companies with a high risk of entering insolvency has increased by 7%.

Trade body R3 found in their latest rankings that since December 2017, the likelihood of professional service firms that may enter insolvency within the next year has risen from 39% to 46%; a sizeable jump in just four and a half months.

In times like this it is crucial that companies review their financial situation regularly and take steps to protect themselves from these increased risks.  The starting point for many is identifying strategies and actions that can be taken now, and a discussion with Walsh Taylor can assist companies in doing this.

In total, of the 80,000 active organisations currently operating in the North East region, 37% of them possess a higher-than-normal risk of insolvency, compared to 33% at the end of 2017.

Despite this, the area’s leisure industries are still faring well when put side by side with their UK peers. Its restaurant sector is additionally at the top of its sectoral business stability table, whereas the pub and hotel sectors are in the second and third positions.

With an office in Darlington, one of the North East’s largest towns, Walsh Taylor’s licensed insolvency practitioners are always on hand to work with both individuals and organisations and help them to formulate workable solutions for their financial problems.

With offices also in Leeds, Harrogate and Bradford, we can offer our expert services to those throughout the rest of the UK as well.

If you would like any more information, please call 03300 244 660.