The number of UK businesses falling down increased in September, but larger firms are showing more resolve than expected, Experian has claimed.
The Insolvency Index, published by Experian, claims that businesses that employ more than 500 people have not fallen down in the same numbers as last September. In total only 11 large firms became insolvent compared to 14 last September. Mind you, with such low numbers, I would not want to read too much into the figures.
However, we have noticed an significant increase in the number of businesses with employees numbering in the range of 20-200 in the past 2 weeks which have been put into an insolvency process or simply stopped trading.
I list some below;
Fylde Dairies - 20 employees
Robertsons Interiors - 16 employees
S Robinson and Sons (Steelworks) -118 employees
Trade Manufacturing Facility Ltd (Pallets) - 138 employees
Parry Bowen (Builder)- 150 employees
JGP Engineering (architectural steelwork) - 50 employees
Discover Leisure ( caravan and motorhome retailer) - 70 employees
What is driving this?
The larger companies have been able to cut headcount over the last couple of years without too much impact on their profits. Whereas medium sized firms are operating on slim margins. In addition, The SME's are perhaps not being supported as much by the banks and we are seeing more aggressive action by HMRC to recover overdue tax. Many construction related businesses are feeling the pressure also.