New research shows a sharp rise in North East businesses entering liquidation with outstanding debts. According to R3’s analysis of Creditsafe data, 186 companies in the region were in liquidation over the winter months, a 42% increase from the same period last year.
The North East and Yorkshire & Humberside were the only UK regions to see a rise in liquidations with outstanding debt, with Yorkshire & Humberside recording a 17.4% increase.
The total debt owed by liquidated North East businesses exceeded £3.4 million, up from £780,000 the previous year. Financial strain from rising costs and reduced consumer spending has contributed to the trend, making it harder for businesses to stay solvent.
