‘More UK companies in financial difficulty’

Apr 13, 2011

Business digest: Report claims a 60 per cent increase in restaurants, bars and professional firms in trouble

There has been a 15 per cent rise in the number of companies facing financial difficulties in the first quarter of this year compared with 2010, according to corporate recovery experts Begbies Traynor.

Their Red Flag Alert report showed that 186,554 firms experienced "significant" or "critical" money problems between January and March of this year. 15,000 of these companies are professional firms.

The worst hit sectors were bars and restaurants, leisure and culture, and professional services, which all saw a more than 60 per cent rise in troubled companies.

Begbies Traynor Group head Ric Traynor blamed the figures on a drop in consumer confidence and spending power, exacerbated by further anticipated job cuts.

Read a full report at BBC News.

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