Insolvency cases increase by 40 per cent in South West
The number of insolvency-related activities in South West rose almost 40 per cent in July compared to the same month in 2022, according to new research.
The findings comes from R3, the UK’s insolvency and restructuring trade body.
R3’s analysis of data provided by Creditsafe shows there were 166 cases of insolvency-related activity in the South West in July – 39.5 per cent more than July 2022’s total of 119.
The South West saw the largest yearly rise in insolvency-related activity, which includes liquidator appointments, administrator appointments and creditors’ meetings, across all the UK regions and nations, followed by the South East (33.3 per cent rise) and Scotland (30.8 per cent).
Charlotte May, Chair of R3 in the South West, says: “The yearly rise in insolvency-related activity in the South West reflects the ongoing mix of challenges businesses are currently facing.
“Inflation and interest rates are still high, consumer spending is low and wage pressure keeps mounting, which is taking a toll on business confidence and meaning more firms are turning to an insolvency process to resolve their financial issues.”
Charlotte, who is associate director for South West and Wales at Manolete, continues: “In times like these, it’s crucial business owners and directors keep a close eye on their finances and act quickly to as soon as they become concerned.
“If you’re noticing early warning signs like declining sales, cash flow problems, or not being able to pay bills on time, that’s the time to seek advice from a qualified source.
“Taking action at an early stage opens up more potential solutions and gives you greater control over your situation than if you’d waited for issues to escalate.”