More than 10,000 firms in Lancashire now in 'financial distress'

By Begbies Traynor

30 Oct 2020

ian-mcculloch-of-begbies-traynor.jpg

Lancashire has seen a 15% surge in the number of firms operating under significant financial distress despite Government support schemes, according to new data released today by Begbies Traynor in Preston.

The latest Red Flag Alert data for Q3 2020 has recorded a 15% year-on-year increase in the number of distressed firms in the region bringing the total to 10,034.

High profile sectors of the local economy took a battering in the third quarter of the year. 91% of the business sectors analysed  by Begbies Traynor for this report saw volumes of distress rise an average of 8% compared to the previous quarter.

With Lancashire currently subject to the most restrictive of lockdown measures, experts at Begbies Traynor warn of further pain ahead if directors don’t take swift action.

The closure of hospitality venues and nightspots combined with social restrictions contributed to a 19% year-on-year increase (up from 305 businesses to 363) in significant financial distress in the Bars & Restaurants sector.

During the period of ‘Eat Out to Help Out’, the Government’s campaign to support the sector, more venues fell into significant distress with a 9% rise on the previous quarter (from 334 to 363).

220 gyms now teeter on the brink as the Sports & Health Clubs sector saw an 11% increase in the number of distressed companies. 

Hotels & Accommodation has seen a 28% increase in distress (from 112 firms up to 143) as venues struggle with events being cancelled or postponed and visitor numbers curtailed for the foreseeable future.

Property and Real Estate saw a 24% increase in distress (from 850 up to 1,058) and Construction saw a 15% rise  (1,288 up to 1,481). Combined, these key sectors of the regional economy total 2,539 companies who are now in significant financial distress. 

Ian McCulloch, partner at Begbies Traynor’s Preston office, said: “These figures are a stark reminder of the challenges business owners face in keeping their business afloat as we head into a period of tighter restrictions. Bars and restaurants which are such an important part of the night-time economy in Preston, and indeed across the entire region, continue to face serious pressure. 

“This impacts not just national chains such as Gourmet Burger Kitchen who recently entered administration and Pizza Express who confirmed closures, but also family-owned, independent venues across Lancashire who are fighting tooth and nail to survive.

“The decisions that company directors in all business sectors take over the coming weeks will be critical to the survival of many firms across our region.  In many cases company directors will need to restructure not only their finances but also their operations and infrastructure to weather the winter ahead.

“The window of opportunity business owners have to seek fresh options with creditors will shrink rapidly as we enter the latter stages of 2020.”

Latest news

1

Eden Project Garden at RHS Chelsea Flower Show 2026 marks 25th anniversary Eden Project garden

Eden Project Garden at RHS Chelsea Flower Show 2026 marks 25th anniversary

21 Oct 2025

2

Breck Homes appoints new managing director Phil Dolan, Breck

Breck Homes appoints new managing director

20 Oct 2025

3

Management buyout at Suresite Group Steve Holden

Management buyout at Suresite Group

17 Oct 2025

4

Meet the influencers who have generated £2m sales for one company Helen and Richard Chalu new

Meet the influencers who have generated £2m sales for one company

16 Oct 2025

5

WHN strengthens position in prestigious legal guide Daniel Long

WHN strengthens position in prestigious legal guide

16 Oct 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
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

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

HR Essentials for pubs, bars and licensed venues
EventBrite NORi - 22nd Oct Webinar.png.png
LBV Hub Webinar
22 Oct 2025 - 22 Oct 2025

HR Essentials for pubs, bars and licensed venues

Online - Teams, Leyland, PR253XH

13:30 - 15:00

Chamber Business Lunch – October
LBV Hub Networking
24 Oct 2025 - 24 Sep 2025

Chamber Business Lunch – October

Lancaster Golf Club, Lancaster, LA2 0AJ

11:00 - 13:30

North West Business Expo 2025
https---cdn.evbuc.com-images-880456273-4862066883-1-original.20241022-105445.jpeg.jpg
LBV Hub Exhibitions
24 Oct 2025 - 24 Oct 2025

North West Business Expo 2025

Bolton Stadium Hotel, Bolton, BL6 6SF

09:00 - 15:00

Lancaster District Business Support Expo
Lancs-cham-logo.jpg.jpg
LBV Hub Networking
29 Oct 2025 - 29 Oct 2025

Lancaster District Business Support Expo

The Platform, Morecambe, LA4 4DB

10:00 - 15:00

Chamber Breakfast Networking – November
Lancs-cham-logo.jpg.jpg
LBV Hub Networking
06 Nov 2025 - 06 Nov 2025

Chamber Breakfast Networking – November

Porsche Centre South Lakes, Carnforth, LA6 1FW

08:30 - 10:30

Lancashire Police business update with The Police and Crime Commissioner
Lancs-cham-logo.jpg.jpg
LBV Hub Roundtables
10 Nov 2025 - 10 Nov 2025

Lancashire Police business update with The Police and Crime Commissioner

Lancaster Castle, Lancaster, LA1 1YN

14:00 - 16:00

Beyond the Brand: Building trust through values and integrity
1.png.png
LBV Hub Networking
11 Nov 2025 - 11 Nov 2025

Beyond the Brand: Building trust through values and integrity

Society1, Coworking Space, Preston, PR1 3LT

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 LBV124 Online Graphic
Subscribe now

Weekly news bulletin