The latest regional insolvency statistics show that there were 1,817 business insolvencies in May, nine per cent lower than in April, but 79 per cent higher than in May last year and 34 per cent higher than in May 2019.
Allan Cadman, who is North West chair of the insolvency and restructuring trade body R3, said: “While the current economic challenges are continuing to hit businesses hard and are pushing an increased number into insolvency, insolvency trends are still uneven.
“In recent months, firms have been buffeted by rising costs, falling consumer confidence and reluctance to spend on anything other than the essentials, which has meant they haven’t made the additional income they need to offset increased expenditure.
“There simply hasn’t been time to draw breath between the issues caused by the pandemic and those now arising from our current economic challenges, and many businesses who have survived so far are now starting to struggle – and rising interest rates will add extra costs for firms to deal with.”
Allan, who is also a partner at insolvency firm Poppleton and Appleby, advised any business owner who is worried about their business finances to seek advice as soon as possible.
He added: “Having the conversation at an early stage will give you more potential options. Most R3 members will give an hour’s free consultation to potential new clients to allow them to understand more about the business’s circumstances, and to outline the options open to them to improve their situation.”