Fears raised over future business prospects
New corporate insolvency figures do not yet reflect the toll the coronavirus pandemic is taking on regional businesses, says a regional fiance expert.
Alexandra Withers, North East chair of insolvency and restructuring trade body R3, was commenting on Insolvency Service data which shows that there were 778 corporate insolvencies across the UK during August, compared to 961 in July.
The August figure is just more than half of the number for the same month in 2019.
Ms Withers is warning that a significant upsurge in corporate insolvencies is most likely just around the corner.
She says: “The decrease incorporate insolvencies over August was driven by a drop in administrations and compulsory liquid ations, but despite this, there is no question that the pandemic is having an impact on regional businesses that is not yet being reflected in the insolvency figures.
“With a number of temporary Government measures aimed at reducing insolvencies set to come to an end soon, this situation may start to change before long.”
Ms Withers, an associ - ate in the insolvency department of Short Richardson & Forth Solicitors in Newcastle, added: “As they begin to wind down and this crucial safety net disappears, we expect to see more requests for both corporate and personal insolvency advice and support.
“This is a worrying time, unemployment is increasing, business debt is rising, and the economy is still nearly 12% below pre-pandemic levels.
"Anyone concerned about their financial situation, should seek advice from a qualified professional as soon as signs they might be in trouble begin to show themselves."