West Mids businesses worse off in 2011, says report
The number of companies in the West Midlands entering administration has increased 9 per cent over the last year, despite a drop in the third quarter. That's according to accountancy firm PwC.
The firm's research reveals that over the past quarter, the number of companies going bust has fallen 14 per cent over the last three months.
The study reveals 382 companies in the West Midlands became insolvent in the third quarter of 2011, compared to 446 in the previous quarter.
Nationally, 3,601 companies became insolvent in the third quarter of 2011 compared to 4,046 in the previous quarter – an 11 per cent decrease.
Matthew Hammond, partner in the business recovery services practice at PwC in the Midlands, said: "The real issue in these numbers is the increase in insolvencies in Q3 2011 compared to Q3 2010 of 9 per cent.
"The largest sectors responsible are construction (11 per cent), hospitality and leisure (18 per cent) and retail (12 per cent). Some of the drivers for these increases are well documented, most particularly the pressure on the consumer."
