Company failures increases
The number of businesses going to the wall has increased dramatically in the past three months. The number going bust has increased 35% on last years figure for the same period. The construction, retail and manufacturing sectors have had a particularly bad time with around 85 small businesses failing each day.
Construction company failures showed a marked increase in the first quarter of 2009 compared to the same period during 2008, a rise of 65% overall. The retail trade saw a rise of 45% in companies folding and manufacturers in all areas have seen a huge number of failed companies.
The increase in the North East was not as sharp as in the South East failures rose by 47.54% and in the North West by 41.1%, London showed a figure of 21.9%. One of the main reasons for the failures has been laid at the door of financial institutions who are failing to support businesses through lack of extending or increasing loans or other credit agreements.
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