161,000 companies are experiencing ‘significant’ or ‘critical’ financial
distress owing creditors, suppliers and service providers more than £55bn.
This is partially down to hardening attitudes of trade creditors more willing
to take court action to recover what they are owed.
Insolvency specialists Begbies Traynor made the announcement in its latest
Red Flag update, which monitors the warning signs of companies in distress.
According to the firm the number of troubled companies rose by 20,074 to
161,601, compared to the first quarter of 2009.
“We estimate that approximately 7% of the increase is the result of a shift
in trade creditor behaviour, with an increase in court actions evidence of their
willingness to take action against their debtors,” Begbies Traynor said.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies