Over 116,000 North West firms at risk of collapsing, data shows

Around one third of businesses in the North West are at a heightened risk of insolvency, according to data.

New research, from restructuring and insolvency trade body R3, found the number of companies at risk to have risen from one in four at the beginning of the year.

The organisation’s figures show that over 32% of firms in the region, around 116,700 companies, have a higher-than-normal risk of failure in the coming 12 months.

Tech and IT enterprises were found to be experiencing the most pressure, with nearly 39% operating at an elevated risk.

Professional services firms were second (with 37%) and transport and haulage third (36%), followed by construction and agriculture (both 31%).

Agriculture showed the biggest swing. The industry was one of the lowest risk sectors at the start of 2017, when just 20% were at a heightened risk of failure.

The North West Chair of R3, Begbies Traynor partner Paul Barber, said: “Although the business climate has been relatively benign during 2017, the number of firms at risk has been rising steadily in the second half of the year, with December showing the biggest rise of the year.

“Businesses are navigating uncertain times, while the lower pound and possibility of a fall in consumer spending are adding to the pressure.”

He added: “Directors will need to actively monitor their performance and should be ready to take action and call in professional help if they see the warning signs.”