Business liquidations rise by 10%
Moore Stephens an accounting and advisory network has published a report quoting there has been a 10% rise in the number of businesses liquidated in 2018.
With an increase from 13,010 cases in 2017 to 14,270 in 2018, there is a clear pressure being placed on businesses with Moore Stephens citing rising interest rates and Brexit disruption as being the main causes.
The report suggests that stretched businesses are opting to liquidate rather than go into administration. Choosing to close and be wound-up rather than restructuring meaning fewer jobs are being preserved.
Isobel Brett, Director, Bretts Business Recovery said “ Many businesses are cutting their spending in light of the Brexit uncertainty, this is having the knock-on effect of creating gaps in the smaller firms order books. Already financially stretched, lenders are even more cautious in providing further finance to these small firms. This is leading many business owners to throw in the towel.
We advise speaking to your local business recovery specialist as soon as you recognise your firm is in financial difficulties. The nature of our business means that we have access to a wide range of contacts offering specialist finance options but we also have the experience to determine the required overall rescue strategy for the business. If however the business is deemed no longer viable we can provide guidance on the process and if engaged, ensure the process is carried out smoothly”
If you or your client is in financial difficulty please do get in touch using the form below or if you are looking for some advice on the Brexit uncertainty and what small businesses can do see our blog Deal or no deal time to give your company a health check.