The number of corporate administrations has risen in the North East of England this year, with a 33.3 percent increase on 2010. During the last quarter of 2011, 20 administration appointments occurred. Baker Tilly accountants compiled data from The London Gazette which showed that only 15 appointments had occurred in the same quarter of 2010. The North East had 19 appointments during the months July to September 2011.
Nationally, there were 644 appointments for administration in the last quarter of 2011, a large increase on the 568 during the same quarter in 2010. According to one of the partners at Baker Tilly Restructuring and Recovery LLP, Mark Ranson, the figures are a reflection of the continuing difficulties experienced by businesses in the North East, although the figures are modest overall. He added:
“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.”
Ranson further stated that they expect further difficulties to continue until the end of the current quarter as demand continues to be low. Businesses will also be affected by the closures of high profile companies nationally, which have been announced recently.
The largest percentage increase of administration appointments was in London, where numbers increased to 239 from the previous figure of 157. The number in Yorkshire and Humberside increased to 83, a 25.7 percent increase. The North East experienced the second largest increase in administration appointments, and the difficulties are set to continue.
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