Partner Article

Administration down by 25% in the North East

THE number of North East firms falling into administration declined by 25 % in 2010, research has found.

Business advisory firm Deloitte said that the number of firms entering administration fell from 407 to 304 last year.

The second quarter of 2010 saw a decline of 43% on the previous quarter, with a total of 65 companies falling into administration compared with 96 in Q1 of 2010.

The firm has warned that despite the improvement statistics, the reality is that many companies are still in danger.

Neil Matthews, reorganisation services director at Deloitte in Newcastle, Said: “A large number of struggling companies were able to stay afloat because of low interest rates, a lenient approach by lenders and HMRC’s favourable Time to Pay scheme.

“However, the rapidly changing economic environment will no longer make this sustainable.”

Nationally, the property and construction sector bore the brunt of the economic downturn in 2010, with 453 companies going insolvent.

The retail industry showed healthy signs of resurgence in 2010 with a 43% decline in administrations from 165 compared to 290 in 2009 across the UK.

This was posted in Bdaily's Members' News section by Ruth Mitchell .