The number of North West firms in significant distress has increased by a third in the last year, new figures reveal.
The information from the latest Begbies Traynor Red Flag report found 58,599 firms in the region suffering from significant distress in the first three months of 2024, a 33% rise from the same period last year. The business advisory firm defines significant distress as businesses showing deterioration in indicators including those measuring working capital, contingent liabilities, retained profits and net worth.
That rise is faster than the national average, with Begbies Traynor attributing problems facing businesses to cuts in consumer spending during a time of high inflation and rising interest rates. Sports and health clubs, food and drug retailers and general shops saw significant increases in businesses in distress, but the construction, real estate, support services and professional services sectors continued to make up almost half (49%) of the total number of significantly distressed firms.
Read more here