Partner Article

Corporate administrations increase by a third

Corporate administration increased by a third in the North East during 2011, a figure significantly higher than the overall national picture.

In Q4 of 2011, Baker Tilly reported that there was a total of 20 appointments, in comparison with the 15 recorded during the same period in 2010. Over the same period, administrations increased by 13.5% nationally.

Mark Ranson, partner at Baker Tilly Restructuring and Recovery LLP, says: “The North East figures, whilst modest on overall terms, reflect the continued distress amongst businesses in the region.

“Amongst our assignments this quarter are businesses in contract flooring and chemical industries, reflecting the ongoing reduced demand in the construction and industrial commodities markets.

The figures from across the UK show a negative shift in the number of businesses becoming distressed following a period of stagnation which has occurred year on year to Q3 2011.

Nationally there were 644 administration appointments in England during Q4 2011, an increase on the 568 witnessed during the same period in 2010.

The Q4 figures in the North East also show an increase on the 19 appointments made in Q3.

He added: “We expect further challenging conditions for the North East in the current quarter as a result of this continued low demand and also a knock on effect locally of the high profile national retail failures that have occurred over recent weeks.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .