Eight-fold increase in companies on the ropes

Eight times more companies are facing critical problems at the moment compared to the same time last year.

4,258 businesses are now facing winding-up petitions from creditors or county court judgments in excess of £5,000, compared with just 542 in the second quarter of 2007, Begbies Traynor found.

The firm's Red Flag alert also found that quarter-on-quarter, the number of companies facing critical problems increased by 29% the FT reported.

Further reading:

Companies heading for administration jump 16%