Insight
Insolvency-related activity in North West falls to eight-month low, R3 research finds
- Published on: 17/10/2024
The number of insolvency-related activities in the North West fell to an eight-month low in September, according to new research from R3, the UK’s insolvency and restructuring trade body.
R3’s analysis of data provided by Creditsafe shows there were 353 cases of insolvency-related activity in the North West in September – the lowest monthly total since January 2024 when 303 cases were recorded.
Insolvency-related activity, which includes liquidator appointments, administrator appointments and creditors’ meetings, fell by 13.7% in September when compared to the previous month, and fell by 2.5% compared to September 2023’s total of 362.
Fran Henshaw, Chair of R3 in the North West, says: “September’s drop in insolvency-related activity is significant as it is the first time in several months that the numbers have fallen well below the 400 mark, and it’s also the second month in a row that we’ve seen a decline. Coupled with last month’s rise in business confidence in the region, this suggests the business landscape that is stabilising, although economic challenges still remain.
Compared to the other UK regions and nations, the North West saw the smallest yearly fall in insolvency-related activity numbers. The East Midlands, Northern Ireland and East Anglia saw the biggest drops in insolvency numbers, falling 23.9%, 23.3% and 22.2% respectively.
Fran, who is Head of Corporate Recovery and Insolvency at Beever and Struthers, continues: “While it’s encouraging to see the total number of insolvencies falling in the North West, the decline we’ve seen locally is much smaller compared to other areas of the UK.
“This could be in part due to the region’s dependence on its industrial sector, which has been slower to bounce back from ongoing cost-of-living challenges. High costs of raw materials, contractual delays, and supply chain disruptions have made it more difficult for businesses in this sector to regain stability, and this could explain why we’re seeing a slower rate of recovery.
“I would urge directors and business owners who are worried about the financial health of their business to seek advice as soon as they can. Acting sooner rather than later will provide more clarity on your financial situation and could open up more potential options to addressing the challenges your business is facing.”
