North West insolvencies increase

MORE than 3,100 companies in the North West became insolvent over the course of 2011 – a 2% rise on the previous year, according to figures by accountancy firm RSM Tenon.

Worst-hit was the businesses services sector, where 832 companies hit the rocks during the year. This was followed by the construction sector, which saw 540 casualties.

Neil Sevitt, RSM Tenon’s regional director for the North, said: “These are challenging times for businesses in the North West as many continue to feel the effect of the recent economic downturn.

“Many are still struggling to recover, and so we shouldn’t be surprised at the high number of insolvencies in 2011.”