Record 509,000 British businesses teetering on brink of collapse as coronavirus crisis begins to bite
Record 509,000 British businesses teetering on brink of collapse as coronavirus crisis begins to bite
By Daily Mail City & Finance Reporter
Published: | Updated:
A record 509,000 British businesses are teetering on the brink of collapse as the coronavirus crisis begins to bite.
But this figure from the first three months of 2020 is likely to be just the 'tip of the iceberg', claims insolvency specialist Begbies Traynor, as it only reflects the start of the Government-imposed lockdown in March.
Since the end of 2019, the number of businesses in significant distress has climbed by more than 15,000, according to Begbies' quarterly Red Flag Alert research.
On the brink: Since the end of 2019, the number of businesses in significant distress has climbed by more than 15,000
This 3 per cent rise is the highest since the end of 2017. But of even greater concern is the number in critical distress – a precursor to imminent insolvency.
There was a 10 per cent increase in the firms which fell into this category over the first three months of 2020, to 2,289.
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