Firms in the north of England are still more likely to fail than their southern counterparts, according to a report from Euler Hermes, the world’s largest trade credit insurer
No fewer than eight of the top 10 ‘hot spots’ for insolvency are in the north of the country, with the top spot occupied by the Darlington area which has an insolvency rate of 1.68% – almost double the rate of its nearest competitor, Manchester (0.87%).
The first southern town to feature in the top 20 is Southampton (in 12th place) with an insolvency rate of 0.57%.
The findings show 11 new entrants to the Top 50 league table including Aberdeen, Norwich, Doncaster and Exeter; a sign, that the economic malaise remains a UK-wide concern and one not solely restricted to the North.
Sean Stone, Manager at Euler Hermes who compiled the league table, says that corporate insolvencies will continue to rise: “With the Bank of England expecting zero growth this year and signs of an export led recovery still some way off, we believe there will be more corporate insolvencies in 2012 than 2011,” he says.
