R3’s analysis of data provided by Creditsafe shows there were 186 companies in the North East in liquidation who owed money to their creditors over the winter months – with 64 in December, 49 in January and 73 in February. This was a rise of 42% when compared to the previous winter’s total of 131.
The North East and Yorkshire and Humberside were the only two UK regions or nations to see a yearly rise in companies in liquidation who owed money to their creditors, with Yorkshire and Humberside seeing a 17.4% rise.
Kelly Jordan, Chair of R3 in the North East, says: “The rise in companies in liquidation with outstanding debt across the North East is a sign of the impact of the ongoing financial pressures faced by businesses in the region. Many companies have been grappling with increased costs and lower consumer spending for some time now, and this has made it increasingly difficult for them to pay their bills on time, and in some cases, remain solvent.
The debt owed by companies in liquidation in the North East totalled over £3.4 million over the winter months, a rise of more than £2.7 million when compared to the previous winter’s total of around £780k.
Kelly, who is a partner at Muckle LLP, continues: “If directors are worried about the health of their business they shouldn’t wait to ask for help. When debts are piling up and you’re struggling to pay your bills on time, taking that first step to get support can feel really daunting. However, doing so at an early stage can give you more clarity to make the right decisions for the future of your business and may give you more options for resolving your concerns."