Analysis shows rise in insolvencies across Yorkshire
The number of Yorkshire companies entering administration increased by more than a tenth (12%) during the third quarter of the year, according to new analysis from KPMG.
The business advisory firm’s quarterly analysis of business insolvency shows 46 Yorkshire companies went into administration between July and September, compared with 41 in the previous quarter.
In comparison to the same period last year, the number of business administrations increased by 6% making it the busiest period of 2019 for insolvencies in the region. In the year to date, 128 Yorkshire businesses have entered administration which is an increase on 121 at the same point in 2018.
High profile cases in quarter three included the administrations of clothing retailer Khaadi Fashion, Total Polyfilm, Late Rooms and Super Break.
Howard Smith, associate partner at KPMG in Yorkshire, said: “For some time now, corporate insolvencies have been ticking along at fairly steady levels, so the more marked increase in administrations seen last quarter may herald the start of a new wave of activity.
“This is perhaps unsurprising, given the challenges presented by fragile consumer confidence, rising overheads from fluctuations in exchange rates, increasing employment costs and political uncertainty.
“The good news is that companies across all industries are now proactively addressing long-term issues and are attempting to place themselves on a more sure financial footing, ahead of any further macro-economic challenges that are coming down the line.
“From CVA proposals for retailers, to refinancing in other sectors, there are options out there, and they seem to be paying off for firms taking a fiscally cautious approach.”
Nationally, the number of companies entering administration jumped by more than a third (35%) during quarter three, totalling 417. When compared to the same period in 2018, this number represents an increase of 30% from 322 businesses.
