Hike in insolvency-related activity in West Midlands - R3

The number of West Midlands businesses experiencing insolvency-related activity in January jumped by 39 per cent compared to the same period in 2022, the highest regional rise in England, and the third highest in the UK.

This is according to new research from the Midlands branch of R3, the insolvency and restructuring trade body, which shows that there were 146 cases of insolvency-related activity in the West Midlands last month, up from 105 in January 2022.

R3 's figures are based on an analysis of data from business intelligence provider Creditsafe and include liquidator appointments, administrator appointments and creditors ' meetings.

They come on the back of a number of high-profile company administrations in recent weeks, including local high street retailer Paperchase, and the airline Flybe, which served the region from its West Midlands base at Birmingham Airport.

R3 Midlands Chair Eddie Williams, a partner at PwC in Birmingham, said: “What we are seeing here in the West Midlands is a reflection of what is happening to businesses at a national level, where annual insolvency numbers are now riding at a 13-year high.

“Statistics published by the insolvency service at the end of January show that corporate insolvencies in England and Wales increased by 57.3 per cent last year to 22,109 compared to 2021 's figure of 14,059, and by 75 per cent in comparison to 12,632 in 2020.

“Rising numbers of company directors in the West Midlands are now turning to insolvency processes to resolve their financial issues in the face of rising costs, low consumer confidence and ongoing economic turbulence.

“These issues will not disappear overnight, and we urge business owners to be aware of the first signs of financial distress and seek advice from a qualified source as soon as they show themselves. Many R3 members offer a free initial consultation to those who are looking for such help and want to explore their options. ”