More than 60,000 North West firms are now in "significant financial distress", new research from Begbies Traynor shows.
The firm's latest Red Flag Alert research for Q4 2020 has recorded 61,596 businesses in significant distress - a 14% increase from 54,207 in Q3 2020.
The new figures come as the 海角视频 economy battles the third nationwide lockdown, and they also confirmed a 29% year-on-year increase in significantly distressed companies since Q4 2019 (47,653 - Q4 2019, 61,596 - Q4 2020).
25,783 firms are based in Greater Manchester with 8,805 in Merseyside.
Distress in the financial services sector increased by 41% - from 910 in Q4 2019 to 1,286 in Q4 2020, real estate and property services saw an increase of 37%, and distress for hotels and accommodation increased by 38%.
Every single one of the 22 sectors monitored by the Red Flag Alert research exhibited an increase in significant distress, with 17 sectors experiencing double digit increases in the final quarter of 2020.
Gary Lee, partner at Begbies Traynor, said: “These figures highlight the deteriorating financial situation for many companies across our region.
"Without the financial aid and support measures that the Government has put in place during the pandemic insolvency levels would have been much higher."
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It was also revealed on Thursday that the number of firms entering administration had hit record lows - but that those figures provided a "distorted view of reality".
Mr Lee struck a similar tone, adding: "The sad truth is that for many companies this will provide little more than a stay of execution as debt levels become unmanageable and structural changes across many sectors take their toll.
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“A national lockdown policy with no concrete end in sight does little to help worried business owners and their finance directors.
“The pandemic has actually reduced court activity by limiting the number of CCJs and winding up petitions being issued against indebted companies and there has been a ban on winding up petitions for Covid-related debts so the situation could get even worse when the courts eventually open up fully.
“Although the Government has extended its Covid-19 financial support by way of extensions to furlough and repayment terms on CBILs and bounce back loans it won’t be enough for hundreds of businesses who are unlikely to survive the weeks and months ahead.
“The roll-out of the vaccine offers some light at the end of tunnel but the financial situation for many businesses will remain bleak over the next quarter and beyond.”