R3 sounds bad weather warning

AN outbreak of severe weather, like that of last winter would force one in eight businesses in the North to seek the help of their bank, while one in 25 could go under, according to research by the insolvency trade body R3.
 
The survey showed that four out of five northern businesses (80%) would be damaged in some way by a cold snap. More than half (58%) said staff would be unable to get to work and half (51%) would see profits dented.
 
One in eight (13%) said they would have to ask to extend their overdraft or need access to additional finance, while 4% said they feared it could tip them into insolvency.
 
Jeremy Oddie, North West regional chair of R3 said: “A few days of icy weather this year could easily result in financial disaster, especially for those businesses which are already struggling. Last year the weather caught us all off guard – this year we’d advise businesses to plan for the worst to avoid taking a real hit if trading suffers.”
 
Through the country as a whole, retail and distribution businesses were most concerned about a cold spell.

Oddie added: “It’s no surprise that retailers are worried. R3’s Business Distress Index has shown that distress levels amongst retailers are the highest of any sector, with 58% reporting a drop in profits this year.
 
“Although the last retail figures showed sales were up, people are likely to curb their spending again after Christmas.

“A cold spell, coming on top of the quarter day at the end of December when rent is due, could put many out of business. Any company that is struggling should seek the advice of a professional to ensure it has the best chance of survival,” he added.