BusinessBusiness RecoveryNorth is insolvency ‘graveyard’

North is insolvency 'graveyard'

More businesses in the North of England have gone bust in the last year than in any other region in the country, confirming a North-South divide in failure rates, according to R3.

Link: R3 lends a hand to business

The 11th survey on business recovery shows the Midlands and the North West have the highest insolvency rates in the country whilst companies in the South are far less likely to go to the wall.

Bolton and Manchester were dubbed the country’s ‘busiest business graveyards’ in the survey, followed by Bradford, Halifax and Dudley.

Together, Bolton and Manchester saw 828 businesses go bust last year. Bolton alone lost 166 of its 4,163 businesses, or one in 25, compared to the national average of one in 50. Manchester, the UK’s second biggest city followed closely with 1 in 28 businesses failing.

The survey, carried out between January and December 2002, shows the North West as a whole has the second-highest levels of business failures followed by the Midlands.

R3 president David Buchler said: ‘Companies in the North West are being hit hard by the decline in the manufacturing sector and this, coupled with the effects of the global downturn, has led to high levels of insolvency.’

He added: ‘The South appears to be riding the downturn with some success. The power of consumer spending seems to have stoked the southern economic boiler.

Although London, particularly the City, has experienced round after round of job shedding, these companies seem to have survived by cutting overheads and slashing budgets.

Related Articles

Carillion CFO blew whistle over 'sloppy accounting' months before collapse

Business Recovery Carillion CFO blew whistle over 'sloppy accounting' months before collapse

3m Alia Shoaib, Reporter
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

3m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

4m Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

4m Emma Smith, Managing Editor
Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

Business Recovery Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

4m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

4m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

6m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

6m Emma Smith, Managing Editor