The number of North West businesses in liquidation who owed money to their creditors rose by more than two-thirds in April 2024 when compared to April 2023, according to new research from R3, the UK’s insolvency and restructuring trade body.
R3’s analysis of data provided by Creditsafe shows there were 336 companies in the North West in liquidation who owed money to their creditors in April – a rise of 73.2% from April 2023’s figure of 194.
The North West saw the second largest yearly rise in companies in liquidation who owed money to their creditors, surpassed only by the North East which saw a rise of 95%.
Fran Henshaw, Chair of R3 in the North West, says: “The spike in companies in liquidation who owe money to their creditors in the North West reflects what has been an unsteady economic climate for businesses up and down the UK, with expensive costs of borrowing, low consumer spending and high inflation.
“These high levels of debt can have a huge domino effect on small and medium-sized businesses. Just one or two unpaid bills can be the final blow to SMEs that are already suffering under the current tough economic conditions, putting them at a higher risk of becoming insolvent.”
The debt owed by companies in liquidation in the North West totalled over £6.8 million in April 2024, a rise of more than £1.7 million when compared to April 2023’s total of nearly £5.1 million.
Fran, who is Head of Corporate Recovery and Insolvency at Beever and Struthers, continues: “I would urge company directors to seek professional advice if they find themselves facing financial difficulties.
“There are lots of ways to tackle money worries, and by talking through your concerns at an early stage, more of these options will be available to you and you will have more time to think about how you want to move forward to resolve your concerns.”