Harsh winter ‘could increase insolvency risk for UK firms’

Posted 13/01/2010

Companies across the UK could see their business come under increasing threat of insolvency because of the recent heavy snowfall, according to an expert.

Phil Meekin of business recovery firm Wilson Field has warned that disruption caused by a fortnight of treacherous weather could prove fatal to many companies already struggling as a result of the recession.

He told Fresh Business Thinking that many retailers have been unable to capitalise on post-Christmas spending as a result of the icy conditions, while farmers have seen their crops badly affected.

Mr Meekin also cited transport network problems as a further issue, as poor road conditions have hampered companies’ ability to receive stock and send out cheques.

The expert added: “While many businesses will recover sales as the weather improves, others such as pubs and restaurants … never recoup the lost sales.”

Last month, accountancy firm Woods Squared estimated that as many as 130,000 businesses across the UK are currently in danger of insolvency due to poor economic conditions.