Insolvency-related activity rises by 23% in North West

R3's analysis of data provided by Creditsafe shows there were 409 insolvency-related activities in the region during August, up from 332 in August 2022.

Last month’s figure was the highest since March this year, when there were 476 insolvency-related activities, and the second highest since March 2022, when the number peaked at 815, coinciding with a relaxation in the rules preventing creditors pursuing debts through the courts.

The figures include all insolvency-related activity including insolvency procedures and processes.

Fran Henshaw, North West chair of R3 and Head of Corporate Recovery and Insolvency at Beever and Struthers, said: "The year-on-year rise in insolvency-related activity reflects the challenges facing businesses, but it is particularly worrying to see such a marked rise in August which is traditionally a quieter holiday period.

“Companies are facing challenges from all sides, with inflation and the rise in interest rates pushing up costs, and consumers reining in their spending due to the cost of living crisis. Even well-managed businesses which were previously profitable may not be immune to such pressures.

"In the current economy it is particularly important that directors look out for warning signs like declining sales or cashflow problems and seek professional advice at an early stage. By doing so, they will have options open to them and a much better chance of being able to turn the business around.”