Fewer firms on critical list, says Begbies
THE number of firms in the region struggling to stay in business has fallen by 25% since last year, according to new data.
According to the Red Flag Alert report by the accountancy firm Begbies Traynor, 465 firms in the region were “critical” in the three months to the end of September, down from 627 last time.
Critical is defined as either having a court action against the firm, a winding-up petition, or having entered a company voluntary arrangement.
It was the second consecutive improvement following a 21% fall in critical companies, from 740 to 583, in the second quarter.
The regional figures reflected a 21% fall in critical businesses across the UK, down from 5,272 last year to 4,107.
Gary Lee, partner at Begbies Traynor, said: “Despite the fact we’ve seen recent high-profile and significant administrations in the region, such as JJB Sports and Paramount Foods, the North West is coping relatively well.
“Clearly there are still sectors, such as the property industry, that are having a tough time, while the ongoing situation in the Eurozone means it’s too early to talk about the region having turned a corner.
“However, professional and financial services firms are coping better than they were in the last quarter, as are automotive businesses, and that is having a positive impact on the region as a whole.”
