The number of Yorkshire businesses at risk of insolvency has risen from 30.2 per cent to 44.3 per cent in the last nine months, a figure which adds up to some 4,410 shops.
The figure is slightly higher than the UK average, where 42 per cent of high street retailers are shown to have an elevated risk of insolvency, up from 29.3 per cent in November 2017.
Published by insolvency and restructuring trade body R3, the findings demonstrate what a torrid year it has been for the UK high street, which has seen many high profile brands go under such as Toys R’ Us and Maplin, with others, such as House of Fraser, battling for survival.
Eleanor Temple, Chair of R3 in Yorkshire and a barrister at Kings Chambers in Leeds, says: “With September seeing a six-month high in inflation, consumer spending is likely to slow further as real earnings remain under pressure.
“This, together with the subdued housing market and the uncertain political picture as we enter the final six months before Brexit, may well result in many households being more cautious in their spending.
“With the high street suffering from rising rents and wage costs as well as fierce competition from the internet, physical retailers have some tough challenges ahead. Whatever type of business you have, if you are experiencing signs of financial distress, do seek advice from a qualified professional as soon as possible when the most tools are available to help you.”
In order to survive and thrive in these challenging times, business owners need accurate, reliable and timely financial information, whether that be profit or cash focused, or both, to accurately and effectively manage the company’s finances and drive growth.
At Beavis Morgan, our SME retail business experts can help you identify your requirements and then design and implement a system that will provide all the information you need, within a cost effective and efficient framework.
Being able to understand and evaluate your business through real-time information on actual performance is critical and could mean the difference between survival and business failure.
Through our partner businesses, BM Structured Finance and BM Advisory, we are able to help with sourcing and restructuring debt finance for SME businesses, as well as assisting with resolving issues which can impact on business performance and success, and finding innovative solutions for businesses and individuals in distress.