Member Article

North West leads way for business rescue

More than half of businesses that are declared insolvent in the North West survive in some form, making it the highest rate of business rescue in the country according to a new report from insolvency trade body R3.

The report, ‘Why Insolvency Matters: The insolvency profession’s value to the North West’, reveals that out of approximately 2,391 businesses in the region which became insolvent in 2013/14, 1,243 were rescued and around 34,786 jobs saved.

The business survival rate of 52% is well above the national average of 41%.

R3’s national president, Phillip Sykes said: “The North West is one of the biggest centres for our profession, with over 10 per cent of the UK’s insolvency practitioners based here. “The region also has the best record on business rescue of any part of the UK, resulting in thousands of jobs saved and wider benefits for the regional economy.

“The business community here is supportive of one another and this can encourage a more proactive approach in seeking professional advice for financial problems at an early stage.

“The figures demonstrate the importance of tackling the problems of struggling businesses early on.”

North West chair of R3 and head of corporate recovery and insolvency at law firm JMW, Richard Wolff, said “There has been much talk of a ‘Northern Powerhouse’ which is welcome but that powerhouse won’t function without an effective insolvency regime and profession to pick up the pieces when businesses fail or help them avoid insolvency in the first place.

“This report demonstrates the importance of the profession to the Northern Powerhouse and I am confident that the profession will continue to play a key role in the region’s economy for years to come.”

This was posted in Bdaily's Members' News section by Sophia Taha .