As discussed recently in a previous Walsh Taylor article, business confidence in the North East has seen a decline in 2018 with factors such as skills shortage and the local economy contributing to this.
New data has revealed that despite the number of active companies in the region increasing over the third quarter, a greater proportion are now at risk of insolvency.
R3, the insolvency and restructuring trade body, reported that the firms with a ‘higher-than-normal risk’ of going insolvent in the next 12 months rose from 40% to 42% across Q3. Those operating in the retail and professional services sectors in the area are in particular struggling compared to the rest of the UK, with both sitting near the bottom of the national average table in their respective industries.
In response, Andrew Haslam, the North East Chair of R3, pointed out that the entrepreneurial spirit which has seen an increase in the amount of North East organisations is a good sign. He additionally said that whilst key summer events like the World Cup will have boosted the leisure sector, they will have had a negative impact on retailers. As such, store owners will be hoping that shoppers step out to make their Christmas purchases as early as possible.
With an office in Darlington, one of the North East’s largest towns as well as in Leeds, Harrogate and Bradford, our licensed insolvency practitioners are always on hand to provide business support services to both individuals and businesses throughout the North of England.
To find out more about how we can help you, please call 03300 244 660 for free, confidential advice.