11,000 Lancashire businesses in financial distress, but recovery has been detected

By Begbies Traynor

02 Aug 2021

chris-lawton.jpg

New research from Begbies Traynor reveals that more than 11,000 businesses in Lancashire are currently experiencing ‘significant final distress’ – a 21 per cent increase on the same time last year. 

11,254 businesses located in the region are now operating under significant financial distress according to the latest Red Flag Alert data for Q2 2021. The quarterly research, produced by Begbies Traynor monitors the levels of financial distress experienced by companies in Lancashire. 

However, the re-opening of the economy made an instant positive impact on the fortunes of firms across the region with an 12 per cent reduction in the number of firms in distress compared to the previous quarter (Q1 2021 saw 12,810 firms from across the region in significant financial distress compared to Q2 2021 which saw 11,254).

Sectors with the highest level of distress in the region by sheer volume of companies are Support Services (1,586– a 25 per cent rise on last year), Construction (1,657 – a 20 per cent rise on last year) and Real Estate & Property (1,277 – a 27 per cent rise on last year). 

However, it is worth noting that all three of these key regional business sectors saw recovery in Q2 of 2021 compared to Q1 of 2021. Support Services saw a quarterly decrease in distress of 10 per cent, Construction saw a 10 per cent reduction and Real Estate & Property a 6 per cent reduction. 

Nationally, there are now 651,492 firms who are currently in significant financial distress which is a 24 per cent increase on the same time last year (526,967). 

Chris Lawton, insolvency director at Begbies Traynor in Preston, said: “The 12 per cent reduction in businesses who are experiencing significant financial distress is certainly welcome news for all business owners and employees in our region. 

“We’re not quite out of the woods yet though and the hard fact remains that there are more than 10,000 companies in Lancashire who still face significant financial challenges. That number will be of major concern not only to the company directors running those firms but to other businesses connected to them in the supply chain.

“With recent changes to the UK roadmap out of lockdown and ongoing uncertainties related to the ‘pingdemic’ issue many companies are still in a precarious position. Sadly, any further lockdowns or restrictions introduced later this year could well be the final straw for many of them. 

“The ongoing servicing of existing commercial finance arrangements coupled with fresh debt repayments kicking in from bounceback loans and CBILs means it’s likely to be a chanllenging summer for many businesses across our region.” 

Latest news

1

Lockheed Martin Skunk Works and BAE Systems’ FalconWorks announce strategic collaboration Collaboration between BAE Systems FalconWorks and Lockheed Martin Skunk Works

Lockheed Martin Skunk Works and BAE Systems’ FalconWorks announce strategic collaboration

09 Sep 2025

2

High street retailers urged to ‘take advantage’ of new funded support programme Brian Moore, Lee Johnson, Anne Williamson and Andrew Leeming

High street retailers urged to ‘take advantage’ of new funded support programme

08 Sep 2025

3

Beaverbrooks invest in the high street in difficult conditions Mark Adlestone And Anna Blackburn Beaverbrooks

Beaverbrooks invest in the high street in difficult conditions

08 Sep 2025

4

Preston City Council invests £250,000 in NW Mutual NW Mutual chief exec Dave Burke and Valerie Wise and Matthew Brown from Preston City Council

Preston City Council invests £250,000 in NW Mutual

08 Sep 2025

5

Profit before tax doubles for Eric Wright Group in latest results Jeremy Hartley

Profit before tax doubles for Eric Wright Group in latest results

08 Sep 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Sub36 Networking - Follow the signs
Sub36 Deaf Village Social1200
Networking
17 Sep 2025

Sub36 Networking - Follow the signs

The Deaf Village, Blackburn, BB2 5EN

10:00 - 12:00

LBV124 September/October Launch Event
MBP Arc Cinema Preston Opening 205
Networking
18 Sep 2025

LBV124 September/October Launch Event

The Arc Cinema, Preston, PR1 2BL

08:30 - 10:30

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Longridge Soap Box Derby
Screenshot 2025-06-10 090035.png.png
LBV Hub Fundraisers
14 Sep 2025 - 14 Sep 2025

Longridge Soap Box Derby

Berry Lane, Longridge, PR3 3WH

10:00 - 16:30

Preston Tech Connection - The Ultimate Tech Quiz!
Preston Tech Connection Sept 25.png.png
LBV Hub Networking
16 Sep 2025 - 16 Sep 2025

Preston Tech Connection - The Ultimate Tech Quiz!

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:00

The Business Network Central & East Lancashire
LBV Hub Networking
17 Sep 2025 - 17 Sep 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Your Business, Your Region: Making sense of devolution and Local Government Reorganisation
Chorley Council breakfast event new
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Your Business, Your Region: Making sense of devolution and Local Government Reorganisation

Worden Hall, Leyland, PR25 3DH

08:00 - 11:00

Preston Freelancer Meet-Up: September
Sept Freelancer (1).png.png
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Preston Freelancer Meet-Up: September

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Speed Networking with BNI
2.png.png
LBV Hub Networking
24 Sep 2025 - 24 Sep 2025

Speed Networking with BNI

Chorley Football Club, Chorley, PR7 3DU

16:00 - 19:00

The Marketing Meetup IRL: Lancashire - September
TMM Lancashire
LBV Hub Networking
25 Sep 2025 - 25 Sep 2025

The Marketing Meetup IRL: Lancashire - September

Chorley, PR7 2SL

18:00 - 20:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV 123 Online Graphic
Subscribe now

Weekly news bulletin