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

Three weekly domestic waste collection considered in plans Waste recycling Blackpool

Three weekly domestic waste collection considered in plans

01 Jul 2025

2

Graham Engineering confirms sale to a2e Industries Graham Engineering

Graham Engineering confirms sale to a2e Industries

01 Jul 2025

3

Training 2000 celebrates 'Good' rating by Ofsted Training 2000

Training 2000 celebrates 'Good' rating by Ofsted

01 Jul 2025

4

Fox Group acquires J Fisher and Sons Colin Fisher, Paul Fox CEO and Gary Fisher.

Fox Group acquires J Fisher and Sons

01 Jul 2025

5

Beever and Struthers strengthen leadership team with new partners Dean Curtis and Joe Diston

Beever and Struthers strengthen leadership team with new partners

01 Jul 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
LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

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

The Marketing Metrics that Matter – July 4
LBV Hub Seminars
04 Jul 2025 - 04 Jul 2025

The Marketing Metrics that Matter – July 4

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

08:30 - 11:00

Tri-Site Survey Equipment Showcase
unnamed (2).jpg.jpg
LBV Hub Seminars
09 Jul 2025 - 09 Jul 2025

Tri-Site Survey Equipment Showcase

Crow Wood Hotel, Burnley, BB12 0RT

09:30 - 16:00

Blackburn Cathedral hosts Champagne and Diamonds Event with Ainsworth Jewellers
Champagne-Jewellery 10 07 25_page-0001.jpg.jpg
LBV Hub Awards
10 Jul 2025 - 10 Jul 2025

Blackburn Cathedral hosts Champagne and Diamonds Event with Ainsworth Jewellers

Blackburn Cathedral, Blackburn, BB1 5AA

18:00 - 20:30

Choose Chorley for Business - Talent Reimagined Business Breakfast
talentreimaginedbb.png.png
LBV Hub Seminars
10 Jul 2025 - 10 Jul 2025

Choose Chorley for Business - Talent Reimagined Business Breakfast

Strawberry Fields Digital Hub, Chorley, PR71PS

08:00 - 10:30

Shaping Preston's future by remembering its past
1750160034867.png.png
LBV Hub Networking
16 Jul 2025 - 16 Jul 2025

Shaping Preston's future by remembering its past

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:30

Chamber Summer BBQ
LBV Hub Social
17 Jul 2025 - 17 Jul 2025

Chamber Summer BBQ

The Borough, Dalton Square, Lancaster, LA1 1PP

17:30 - 20:00

Preston Tech Connection: Web3 is Dead. Or is It?
July Longer Banner.jpg.jpg
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Web3 is Dead. Or is It?

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

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 LBV122 Online Graphic
Subscribe now

Weekly news bulletin