Insolvency fears after figures reveal problems for UK businesses
New figures have shown that more UK businesses could be facing insolvency after revealing they are suffering from serious financial problems.
Research carried out by professional services organisation Begbies Traynor found that 186,554 companies are now having either “significant” or “critical” cashflow issues, an increase of 26 per cent over the past three months.
Firms which serve consumers such as bars and restaurants were found to be hit particularly hard, with a 68 per cent rise in the number of those distressed since last year.
Leisure and culture businesses had also begun to struggle, with a 60 per cent rise in distress levels in those sectors.
Ric Traynor from Begbies Traynor said: “A fall in consumer confidence and spending power driven by anticipated job losses lies at the core of the leisure sector’s troubles.”
This comes despite figures from Experian earlier this year showing that the number of businesses facing insolvency fell by ten per cent in January 2011.
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