Insolvency activity among businesses up by 10 per cent in North West

R3's analysis of data provided by Creditsafe shows there were 429 insolvency-related activities in the region during November.

The figure was also six per cent higher than November 2022 and the highest this year except for March when the number peaked at 476.

The figures include all insolvency-related procedures and processes such as administrations, liquidations, receiverships, companies in receivership or wound up, and creditors’ meetings.

However the research shows that late payment problems appear to have eased. The number of overdue invoices on North West companies’ books fell for the fourth month in a row to 545,052, while the number of companies with outstanding bills to pay has remained stable in the past few months and now stands at 53,526. Both figures are four per cent below the level in February.

Fran Henshaw, North West chair of R3 and Head of Corporate Recovery and Insolvency at Beever and Struthers, said: “These figures reflect high levels of business distress as companies face challenges from all sides.

"Higher interest rates have increased the cost of borrowing while inflation has pushed up costs overall and at the same time consumers are spending less due to the cost of living crisis.

"Some businesses are simply running out of road.

“On a positive note, it is good that late payment problems appear to be in check.

"Creditors are actively pursuing debts through the courts at present so some late payers may have gone out of business and in general, companies are being more proactive in terms of credit control to protect their cashflow.

“However we are in a tough economic climate and pressures are likely to increase in the months ahead before things get better.

"Managers need to be alert to the signs of distress and anyone worried about their business finances should seek independent advice from a qualified insolvency practitioner as soon possible.”