Partner Article

Increase in North east corporate administrations in Q3

Corporate administrations in the North East increased by over 25% in the third quarter of this year, still remaining higher than the national average.

Between July and September the number of appointments in the region rose to 19 from 15 in Q2. Nationally, corporate appointments numbered 596 in the last quarter, exactly the same amount as during the same period of 2010, highlighting this issue of economic stagnation.

Restructuring and recovery partner at Baker Tilly Mark Ranson believes the figures continue to demonstrate how businesses have little room for growth or profit manoeuvre.

He commented; “For companies already struggling with cash issues, it is even more vital to tackle any potential issues in advance.

“Traditional credit lending continues to be less available, and HRMC is demonstrating signs of being more aggressive in its actions with defaulting creditors.”

Mark is also encouraging businesses to look at the alternatives to traditional bank lending, such asset based lenders and private equity, which can offer new opportunities, and help businesses manoeuvre through the difficult economic period.

Construction and property companies continue to be hardest hit, numbering 29% of all administrations nationally in the last quarter. The retail sector only represented 15% of appointments, which came as a surprise to many who were expecting many high profile failures on the last rent quarter day.

However many retailers will now be looking forward to the Christmas period in anticipations of the surge of consumer spending during the festive season.

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