The number of insolvency-related activities in the North West has reached its lowest level for 12 months, according to new research from R3, the UK’s insolvency and restructuring trade body.
R3’s analysis of data provided by Creditsafe shows there were 313 new cases of insolvency- related activity, which includes liquidator appointments, administrator appointments and creditors’ meetings, in the North West in January – the lowest recorded figure since January 2024’s total of 303.
Insolvency-related activity also fell by 25.5% in January when compared to the previous month’s total of 420.
Fran Henshaw, Chair of R3 in the North West, says:
“Insolvency-related activity in the North West remained high throughout much of 2024, as businesses grappled with tough trading conditions, rising costs and economic uncertainty.
“Numbers were particularly high in the final months of the year as businesses responded to the Autumn Budget and took steps to prepare for more potential cost increases. Many firms were looking to reorganise their finances ahead of anticipated changes, and the last quarter of 2024 was the busiest in terms of insolvency-related activity as a result.
“As we move into 2025, it would appear that many of the businesses that needed to adapt have done so, which could explain why insolvency-related activity fell in the region last month.”
Despite the decline, the North West had the second-highest number of insolvency-related activities in January among UK regions and nations, second only to Greater London, which recorded 384 cases.
Fran, who is Head of Corporate Recovery and Insolvency at Beever and Struthers, continues:
“One of the key factors behind the North West’s consistently high insolvency-related activity numbers is the region’s high number of construction businesses. Construction businesses have been among the hardest hit by economic pressures, with project delays, rising costs, and supply chain disruption all contributing to ongoing financial difficulties.
“This sector plays a significant role in the local economy, and the challenges it faces are reflected in the higher levels of insolvency-related activity here compared to other regions like the South West, the West Midlands, and Yorkshire.
“My advice to business owners is simple – know your business inside out and if you spot an issue, seek help as soon as you can. There are many options out there for businesses that are struggling, but those options become fewer if you don’t move quickly and seek advice before the problem spirals out of control.”
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