As discussed in a Walsh Taylor article back in May, Carillion’s collapse at the start of the year had and continues to have a profound impact on the country’s entire construction industry.
New research undertaken by trade body R3 has discovered that the impact of insolvency is just as punishing elsewhere, with recent findings showing that 26% of UK companies have struggled financially because of a supplier, customer or debtor becoming insolvent in the past six months.
To add to that, one in ten businesses reported that they would describe another organisation going insolvent as ‘very negative’, whereas 16% of the respondents would deem it ‘somewhat negative’.
These figures lay bare the realities of the so-called ‘domino effect’, where one insolvency is likely to trigger others. This has certainly been seen thus far in 2018, as high-profile cases featuring the likes of Toys R Us and Maplin have hit the headlines.
Andrew Tate, spokesperson for R3, commented that every heavily-publicised corporate insolvency is bound to bring consequences for fellow enterprises. He also pointed out that middle-sized companies are less likely to have the same credit control resources as larger ones, a reminder that all smart businesses should know the importance of mitigating risks and that the insolvency and restructuring professions have a crucial role to play in helping to bring things risks under control.
Over the past ten or so years, our Leeds, Harrogate, Bradford and Darlington-based licensed insolvency specialists have helped hundreds of businesses facing the possibility of insolvency across Yorkshire and the North East. They do this with a sympathetic and practical yet professional approach with all clients.
Should you want to arrange a free, no-obligation chat to discuss your options, please feel free to call Walsh Taylor today on 03300 244 660.