East Anglia: Experian reports increase in business failures during June
THE number of business failures in the East of England edged higher during June, according to new figures from information group Experian.
A total of 146 corporate insolvencies were recorded in the region last month, an increase of 2.8% on June 2011.
Nationally, the total fell by 6.1%, to 1,675, driven by falls of 20.7% in London and 11.6% in the South-East.
At the other end of the scale, the biggest increase, of 18.2%, was recorded in the West Midlands.
Business failures in the East represented 0.08% of the total business population, in line with the national average.
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Broken down according to company size, the figures show that larger companies fared less well than small firms last month.
Insolvencies involving firms with between 100 and 500 employees more than doubled while failures among companies with more than 500 staff grew by 18%.
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All categories of smaller firms saw falls last month, but Experian warned that the failure rate among larger companies was likely to have a knock-on effect in future figures.
Max Firth, managing firector for Experian Business Information Services in the UK and Ireland, said: “Although the overall figures for June show a fairly stable environment at the moment led by smaller firms, the higher insolvency rate at the top end of the business world will have an impact on the supply chain.
“Many smaller suppliers, unless they have a good credit management process in place, will find themselves short of a major customer and left with unpaid bills. They will need to move quickly to fill the gap in their customer base.
“When taking on new business, it is vital they start to monitor the health of both customers and suppliers. They can be forewarned of any issues and be in a better position to deal with the impact of another business’s failure.”