North East liquidations on the increase

Feb 9 2010 by Peter McCusker, The Journal

THE number of compulsory liquidations across the North East increased by 9.1% last year, figures from the Government's Insolvency Service reveal.

In 2008 there were 186 compulsory liquidations, however last year the figure rose to 203. The figure compares unfavourably with other large cities in the north of England.

During the same period, the number of compulsory liquidations remained the same in Leeds and actually fell in Manchester.

Meanwhile, figures from the Insolvency service also revealed that the number of personal bankruptcies across the North East and Teesside fell slightly from 3,603 in 2008 to 3,510 in 2009.

The fall of 2.6% compared to an increase nationally of 10.8%.

Nationally, the total number of personal insolvencies for the full year has exceeded 130,000.

Mark Ranson, partner at the Newcastle office of Baker Tilly Restructuring & Recovery, said: “All eyes should be on the financial impact for UK PLC, as government funding support falls away and debt takes control.

“Our major concern is for 2010 as the predicted increase in interest rates and reductions in public sector spending may result in even more individuals entering insolvency.”