But according to the study, by business information provider Dun & Bradstreet, the increase is concentrated among smaller businesses while larger company liquidations are decreasing.
According to D&B senior analyst Philip Mellor the rise in insolvencies ‘is in part due to the drop in tourism and other adverse factors caused by the foot and mouth epidemic.’
The biggest increase in insolvencies from the first to the second quarter was 65% in the North East, while London company failures dropped 31%.
But according to Peter Hughes Holland, head of business recovery at Chantrey Velacott and president of R3’s smaller practitioners issues committee, D&B’s findings are to be treated with caution.
He said: ‘There is a lot of talk of doom and gloom, but talk is cheap, and it’s more important to see what is really happening out there.’
‘I don’t think the increase in figures could be due to foot and mouth. All you can derive from the figures is that there are regional variations.’
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