Corporate insolvencies across Yorkshire rise by 12% as rising costs continue to bite
The number of companies filing for administration across Yorkshire and the North East has jumped by 12% year-on-year, as cost inflation, rising interest rates and sluggish growth continue to bite British businesses.
Analysis of notices in The Gazette by Interpath Advisory reveals that a total of 37 companies based across Yorkshire and the North East fell into administration in Q2 2023 – up from 33 companies in Q2 2022. This represents a 12% increase on last year, and is further evidence that UK insolvency activity is now back to pre-pandemic levels following the record lows seen during 2020 and 2021.
This mirrors the UK picture which saw a total of 315 companies fall into administration in Q2 2023 – up from 212 companies in Q2 2022, a 48.5% increase on last year.
High profile insolvencies see across Yorkshire and the North East during Q2 2023 included the administration of the food manufacturing business, Plant and Bean Limited; the pre-pack sale of the retailer, Jack Brodie Limited; and the administrations of Cervest Limited, an AI-powered climate intelligence platform, and Planet X Ltd, an online retailer or bicycles and cycling accessories.
James Clark, managing director in Interpath’s Yorkshire team, said: “It’s no surprise that a sluggish economy, stubbornly high inflation and tightening monetary policy are increasing the pressure on businesses up and down the country.
“Indeed, the interest rate conundrum appears to be the number one concern for many of the businesses that we are speaking to at the moment. With the expectation that it will take some time before we see rates start to come back down, the overall cost of borrrowing is now hitting double figures – something which we’ve not seen in the UK for at least 15 years. This will have an impact on any business which relies on debt finance, and particularly those which are highly leveraged.
”At the same time, companies continue to contend with rising input prices, as well as walking the wage inflation tightrope. And consumers are cutting back on discretionary spending as the impact of those 13 consecutive interest rate rises puts a squeeze on disposable income.”
