The latest Insolvency Index from Experian has shown that the rate of insolvencies dropped to 0.08 per cent in August, its lowest point since February. This should be seen in the context of the insolvency rate in the first quarter of 1992 when 0.82% of businesses were failing. So 10 times as many! The highest insolvency rate so far recorded, post credit crunch, was 0.24% in the construction industry in the first quarter of 2009.
The North East and West Midlands had the highest rate of insolvency in August at 0.11 per cent. Yorkshire and the East Midlands were the most improved with an insolvency rate going to 0.13 per cent from 0.10 per cent and 0.09 per cent to 0.07 per cent respectively. The best performing region with the lowest insolvency rate of 0.06 per cent was the South West.
The North East is perhaps more dependent on public sector spending than other areas which may go some way to explain the differences.
If your business is based in the North East and you are struggling then speak to Eric Walls our Director of Turnaround and Insolvency based at our Gateshead Office 0191 482 3343. We will go through all your options.