Uncertain times for businesses in the North West as 1 in 3 firms at risk of insolvency

One in three North West firms are now at heightened risk of insolvency
One in three North West firms are now at heightened risk of insolvency
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Around one in three North West firms are now at heightened risk of insolvency, up from one in four at the start of the year, according to new figures from the restructuring and insolvency trade body R3.

R3’s research shows the number of companies in the region considered at a higher than normal risk of failure in the next 12 months has risen from 24 per cent in January to over 32 per cent in December – equivalent to over 116,700 firms.

Technology and IT businesses are under greatest pressure, with almost 39 per cent of firms at greater than usual risk, followed by professional services, transport and haulage, and construction and agriculture.

Paul Barber, North West Chair of R3 and a partner at Begbies Traynor, said: “Businesses are navigating uncertain times, while the lower pound and possibility of a fall in consumer spending are adding to the pressure.

“Directors will need to actively monitor their performance and should be ready to take action and call in professional help if they see the warning signs.”