Last year saw a 'sharp rise' in the number of north west business entering administration, big four accountant KPMG has said.
According to KPMG analysis, the number of firms entering administration in the region increased 33 per cent to 283 in 2019, up from 213 recorded the year before.
Rick Harrison, restructuring partner at KPMG in Manchester, said trading conditions during “profound political and economic uncertainty” in 2019 were “a bridge too far”.
Notable insolvency cases in the period include Pochin, Bolton Wanderers Football Club, Unilad publisher Bentley Harrington, LateRooms and Total Polyfilm.
However, the last quarter saw the number of businesses in the north west entering into administration fall by 16 per cent, which Mr Harrison said was “good to see.”
He said: “While certain sector-specific challenges remain, we would encourage companies to continue to focus on good financial housekeeping.
“Keep a tight grip on cash and costs, focus on operational efficiencies and maintain clear visibility over supply chains, where unforeseen events can have a significant knock-on impact on business.”
The rise in north west insolvencies outpaced the national increase by 5 per cent, as the number of companies falling into administration totalled 1,403 businesses, compared with 1,341 in the previous year.
Nationally, KPMG said it was a particularly tough year for the construction industry, which saw 254 administrations compared to 216 in 2018, and the real estate sector, which saw 69 administrations, up from 53 in 2018.
Mr Harrison said: “Capital-constrained landlords will need to adapt to the structural changes affecting the sector, which on some sites will require substantial investment to implement repurposing strategies.
“This is a trend we are likely to see continue well into 2020, as the full impact of retailers’ store closure and estate rationalisation programmes take effect.”
