Levels of business distress have risen by 17 per cent in Yorkshire, making the region one of the most distressed areas of the UK, according to Begbies Traynor.
The business rescue and recovery specialist’s quarterly Red Flag Alert shows that levels of business distress in Yorkshire and Humber have increased even faster than the UK average year on year.
Begbies Traynor’s David Wilson said: “The figures show the impact of seasonal trends, retail and hospitality businesses are most likely to fail in the first quarter of any year, but that doesn’t account for all of the increases.
“We are seeing a worrying spread of distress across a great number of business sectors with business to business support and professional services particularly hard hit.
Begbies Traynor defines companies in distress as those facing court action, with County Court Judgements or Winding-Up Petitions against them, or poor or out of date accounts.
The firm says high levels of legal actions taken against debtors indicate that creditors are attempting to maximise cash collection right across their customer base.