New report reveals decrease in 'business distress' across region

By Begbies Traynor

03 Nov 2021

chris-lawton-of-begbies-traynor-in-preston.jpeg

13 per cent decrease in financial distress in region compared to previous quarter Evidence of economic recovery – but almost 10,000 firms remain in distress Warning over 139 per cent rise in CCJ’s during Q3 2021 as businesses resort to courts to recover debts

New research from Begbies Traynor in Preston reveals a 13 per cent reduction in business distress in Q3 of 2021 compared to the previous quarter – but confirms that almost 10,000 firms in Lancashire still face significant financial challenges.

9,739 businesses located in the region are now operating under significant financial distress according to the latest Red Flag Alert data for Q3 2021. The quarterly research, produced by Begbies Traynor monitors the levels of financial distress experienced by companies across Lancashire.

The gradual re-opening of the economy and steady increase in consumer confidence is reflected in the latest figures with a 13 per cent reduction in the number of firms in distress compared to the previous quarter (Q2 2021 saw 11,254 firms from across the region in significant financial distress compared to Q3 2021 which saw 9,739).

Notable double-digit reductions in distress were seen across Lancashire in Construction (15 per cent reduction), Industrial Transportation (23 per cent and Health & Education (17 per cent).

Some sectors of the regional economy still retain high volumes of distress in the region by sheer volume. These are Support Services (1,332), Construction (1,408) and Real Estate & Property (1,163).

Nationally, there are now more than half a million firms (562,550) who are currently in significant financial distress. CCJ’s are often a bellwether for insolvency and the latest data paints a gloomy picture. Official data shows there were 9,101 CCJs lodged against companies during Q3 2020, rising to 21,769 during Q3 2021 – a 139 per cent increase. This acceleration in CCJ’s was also evident between Q2 and Q3 2021 with a 51 per cent uplift.

These figures show that court activity is picking up as creditors, especially landlords, become more aggressive in chasing debts.

Chris Lawton, insolvency director at Begbies Traynor in Preston, said: “The percentage fall in business distress across the region is certainly good news and gives directors some breathing space as they recover from the pandemic. However, the sheer number of firms still in financial peril is worrying. Every day we’re having conversations with business owners and their advisers and the same two issues keep cropping up.

"Firstly, there are huge challenges for many companies in repaying bounceback loans they’ve taken out. Secondly, creditors, including HMRC and landlords are taking an increasingly aggressive line in chasing debts. The pressure is still on for thousands of businesses and we’re likely to see an acceleration of insolvency rates in 2022 as funds dry up and directors have exhausted their options. Company directors who find their business in financial distress should take swift action before their options run out.”

Latest news

1

College restaurant honoured with top culinary award from prestigious chefs’ guild Karen Lilley Front Of House Lecturer David McKown David Lyon Scholars Manager And Blackburn College Principal Dr Fazal Dad

College restaurant honoured with top culinary award from prestigious chefs’ guild

10 Jun 2025

2

Cosmetic manufacturer lets new unit on Frontier Park, Burnley Badgequo have agreed to let the site on Frontier Park

Cosmetic manufacturer lets new unit on Frontier Park, Burnley

10 Jun 2025

3

SQ Digital celebrates 25 years and enters new era with CEO appointment Kamal Essa

SQ Digital celebrates 25 years and enters new era with CEO appointment

09 Jun 2025

4

New chair appointed to Atlas BFW Management Graham Cowley

New chair appointed to Atlas BFW Management

09 Jun 2025

5

Napthens makes key appointments to further growth strategy of newly appointed managing director Napthens appointments Jayna Mistry, Onyeka-Obedi and Rebecca Rhodes

Napthens makes key appointments to further growth strategy of newly appointed managing director

09 Jun 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
Sub36 Social1200pxandi Lewis
Networking
11 Jun 2025

Sub36 Networking

Mytton Fold Hotel , Blackburn , BB6 8AB

09:30 - 11:00

Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200pxtrident 2
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

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

LBV123 July/August Launch Event

Burnley College Industry Hub, Burnley, BB120AN

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

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

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

09:00 - 15:30

The Business Network Central & East Lancashire
LBV Hub Networking
12 Jun 2025 - 12 Jun 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Preston Freelancer Meet-Up
LBV Hub Networking
12 Jun 2025 - 12 Jun 2025

Preston Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Midnight Oil: The Entrepreneur’s Journey: Scaling Strategies with Brad Waldron
BU-June-Event-BRAD-1.jpg.jpg
LBV Hub Networking
18 Jun 2025 - 18 Jun 2025

Midnight Oil: The Entrepreneur’s Journey: Scaling Strategies with Brad Waldron

Blackpool Football Club, Bloomfield Rd, Seasiders Way, Blackpool, FY1 6JJ

08:30 - 11:30

Chamber Business Lunch – June
Chamber Logo1.png.png
LBV Hub Networking
20 Jun 2025 - 20 Jun 2025

Chamber Business Lunch – June

Lancaster House Hotel, Bailrigg, Lancaster, LA1 4GL

11:00 - 13:30

90 day Business Planning Workshop
LBV Event Header.png.png
LBV Hub Seminars
20 Jun 2025 - 20 Jun 2025

90 day Business Planning Workshop

Bolton Arena, Arena Approach, Horwich, BL6 6LB

09:00 - 16:30

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