The traditional Christmas boost may not be enough to save many North East businesses from failure, an insolvency expert has warned.
Chris Ferguson, North East chair of insolvency and restructuring trade body R3, was speaking after the latest Insolvency Service data revealed a 15.7% month-on-month increase in corporate insolvencies. The figures were also 38.2% higher than the number of business failures reported this time last year.
Mr Ferguson, who is head of recovery & insolvency at Gosforth-based RMT Accountants & Business Advisors, said: “The run-up to Christmas is often the most important part of the trading year for many North East businesses, especially those in the retail and hospitality sectors, that can tip the balance between a good and bad trading year. Although we are now entering the busy festive season, with the added bonus of a men’s World Cup, the jury is still very much out on whether the pre-Christmas trading period will lead to the traditional boom many businesses need.
