Pressure easing on business in North, says R3
Distress levels among in the North of England remain high – but the pressure is easing and there are tentative signs of recovery, according to research by the insolvency trade body R3. R3’s latest Business Distress Index shows that 60 per cent of companies in the North are reporting at least one sign of distress, compared to 79 per cent last quarter. There were reductions in nearly all the main indicators of distress, and also stronger indications of growth. The survey found that 30 per cent per cent of Northern businesses said they were...
read moreComment on the retail crisis from R3
Jeremy Oddie, North West chair of R3 and head of recoveries at Mitchell Charlesworth, says: “The recent publicity about the January sales may have distracted attention from the very real problems facing the retail sector. The unpredictability of consumer spending, rising costs, high levels of borrowing and competition between stores and from the internet are amongst the pressures on retailers. Even the bigger, established names are suffering. “Being realistic, it is not possible to save every struggling retailer and we can expect to lose...
read moreDistressed deals at lowest level in years
Acquisitions of insolvent businesses in the North West have continued to fall in 2011, according to research by Experian on behalf of the insolvency trade body R3. The figures show that 48 companies were acquired out of administration or other formal insolvency procedures during the year, compared to 65 the previous year. Distressed deals accounted for one in 10 of all mergers and acquisitions in 2011, compared to one in seven during 2010, and one in five when activity peaked in late 2009. Jeremy Oddie, North West chair of R3...
read moreSevere weather warning for northern businesses
A cold snap like that of last winter would force one in eight businesses in the North to go to the bank cap in hand, while one in 25 could go bust, according to research by the insolvency trade body R3. The survey showed that four out of five northern businesses (80 per cent) would be adversely affected in some way by a bout of severe weather. Over half (58 per cent) said staff would be unable to get to work and half (51 per cent) would suffer reduced profits. One in eight (13 per cent) said they would have to ask to extend their...
read moreHauliers face harsh winter as bank credit dries up
Haulage firms across the North West are facing a harsh winter as they feel the impact of a financial double whammy, according to the insolvency trade body R3. Not only are firms under pressure from rising fuel costs and the duty imposed on it, but also European regulations that require them to have access to capital to be able to operate. Jeremy Oddie, North West regional chair of R3, says: “Under the rules, hauliers have to be able to demonstrate their ongoing financial viability, which in practice means they need to have...
read moreNW amongst worst affected as debt worries reach record levels
Concern over debt has reached record levels in Great Britain with people in the North West amongst the worst affected, according to a survey by insolvency trade body R3. R3’s latest Personal Debt Snapshot shows that two out of three people in the region (65%) are now worried about the amount they owe – up from 40% a year ago. It reveals that the North West is one of the worst regions in the country for debt worries, beaten only by the North East and London. According to the survey, over half of the North West’s...
read more