New research suggests that financial pressures have eased slightly on retailers based in the North West, but almost four in ten are still at ‘higher than normal’ risk of insolvency.
The figures from insolvency and restructuring body R3 show that the number of brick and mortar retailers at higher than normal risk of insolvency fell slightly to 38.7% in the final three months of 2019.
On this measure, North West retailers were only beaten by shops in London and the East of England.
Paul Barber, North West Chair of R3, said: “While the high street is clearly suffering, North West retailers are proving more resilient that their counterparts in some other regions. However within the region, there is still a big contrast between the cities like Manchester and Liverpool on the one hand and smaller town centres on the other.”
Tom Fox, Licensed Insolvency Practitioner at Umbrella Insolvency said: “January and February are traditionally tricky months for high street shops, restaurants and other brick and mortar businesses.
“Although these figures show that North West retailers are slightly more secure than shops in other parts of the country, I wouldn’t take anything for granted in a year with so much potential for uncertainty.”
The figures used in this blog post come from R3’s retail insolvency risk tracker, which is compiled using a database that measures companies’ balance sheets, director track records and other information to calculate the likelihood of survival over the next 12 months.
For more information or advice about company insolvency options, speak to a member of the www.umbrella.uk team today. Call: 0800 611 8888.