15 March 2018: Earlier this week the Chancellor announced the economy is in a better position than expected. However, not all business sectors will share his confidence that there is light at the end of the tunnel.
A slowdown in housebuilding in January contributed to the biggest monthly decline in construction output since June 2012. The UK statistics body said the construction sector remained "a weak spot" in the economy. UK’s clothing retailers are under pressure with 19% demonstrating early warning signs of insolvency according to recently published research. Big name restaurant chains are announcing closure and cutbacks and estate agencies are also struggling, some issuing profit warnings, others selling parts of the business to free up cash and some being forced to liquidate.
Due to being over–populated with competitors it is a tough market for many industries. The increasing national minimum wage is heavily impacting cash flow for many and the weak pound is resulting in rising produce prices and not all businesses will survive.
Should you or your clients require advice in considering survival options or any other insolvency matters, please contact any of BRI Business Recovery and Insolvency’s management team, who will be more than happy to help.