Soaring numbers of North East businesses went into liquidation over winter as the pressures of rising costs triggered collapsing finances, new figures show.
R3, the 海角视频鈥檚 insolvency and restructuring trade body, has explored the number of companies which called in liquidators as well as the volume of debts they accrued between December and February, revealing how some regional businesses have been struggling to stay solvent.
The trade body鈥檚 analysis shows the number of North East businesses in liquidation rose by 42% over the three-month period, compared to the same period last year, leading it to call for firms to take swift action.
R3鈥檚 analysis of data, provided by Creditsafe, shows there were 186 companies in the North East in liquidation who owed money to their creditors, with 64 in December, 49 in January and 73 in February, compared to the previous year鈥檚 total of 131.
The North East and Yorkshire and Humberside were the only two 海角视频 regions or nations to see a yearly rise in companies in liquidation who owed money to their creditors, with Yorkshire and Humberside seeing a 17.4% rise.
Kelly Jordan, chair of R3 in the North East, said: 鈥淭he rise in companies in liquidation with outstanding debt across the North East is a sign of the impact of the ongoing financial pressures faced by businesses in the region.
鈥淢any companies have been grappling with increased costs and lower consumer spending for some time now, and this has made it increasingly difficult for them to pay their bills on time, and in some cases, remain solvent.鈥
The debt owed by companies in liquidation in the North East totalled over 拢3.4m over the winter months, a rise of more than 拢2.7m when compared to the previous winter鈥檚 total of around 拢780,000.
Companies which went into liquidation within the region include famous music shop JG Windows Ltd, which closed at the end of last year when its owner admitted it could no longer compete with big online retailers. The closure brought to an end a 115-year history as a shop selling instruments and sheet music to everyone from aspiring musicians to rock stars.
Liquidation documents later showed it had debts of 拢956,986, although assets worth 拢148,186 were available to return funds to preferential creditors. Instruments and other stock were auctioned off in February
Meanwhile in February rising costs and increased competition led Riley鈥檚 Fish Shack owner Adam Riley to liquidate his wholesale business Riley鈥檚 Fish Limited, in moves to protect jobs and focus on strengthening the Fish Shack.
A statement of affairs shows the firm was liquidated with a deficiency of 拢427,511 and a list of 53 creditors, including a number of food and drink firms.
Ms Jordan, who is a partner at Muckle LLP, added: 鈥淚f directors are worried about the health of their business they shouldn鈥檛 wait to ask for help.
鈥淲hen debts are piling up and you鈥檙e struggling to pay your bills on time, taking that first step to get support can feel really daunting. However, doing so at an early stage can give you more clarity to make the right decisions for the future of your business and may give you more options for resolving your concerns.鈥
