9,325 firms in Lancashire now in significant financial distress

By Begbies Traynor

29 Jul 2020

ian-mcculloch-of-begbies-traynor.jpg

More than 9,000 businesses across the region are operating under significant financial distress, according to new data released by Begbies Traynor.

The latest Red Flag Alert data for Q2 2020 has recorded a 9% year-on-year increase in the number of distressed firms in the region. Since the beginning of the pandemic in the UK – an additional 629 have fallen into distress bringing the total to 9,325.

Experts at Begbies Traynor in Preston say the rise could have been much higher, was it not for reduced court activity due to the coronavirus pandemic which has substantially reduced the number of CCJs and other legal action being taken against indebted companies.

Key sectors of the regional economy have seen double-digit increase in distress over the past 12 months.

Food & Beverages has seen a 22% year-on-year increase (up from 195 firms to 238), the Sports & Health Clubs sector has seen an 13% increase (from 188 to 213) and Travel & Tourism a 24% increase (from 71 to 88). 

The shuttering of bars & restaurants has contributed to a 11% increase in distress in the sector with 334 (up from 302) teetering on the brink across the region. 

Ian McCulloch, partner at Begbies Traynor in Preston, said: “These figures are alarming but the real pain is likely to begin when the Government furlough scheme is withdrawn, bounce-back loans are spent and the courts re-open for enforcement action.

“This crisis will force many companies out of business. The reality is that many businesses across our region are unviable due to high levels of debt and poor sales. Company directors must take swift action if they’ve exhausted their Government support options and levels of business continue to decline over the coming weeks.

“On a positive note, we have already seen many businesses restructure their operations and finances and we expect to see more in the months ahead. Crisis always creates opportunity and businesses will have to be creative and bold to make changes in order to thrive in the post-Covid climate. Entrepreneurs who are able to refinance, adapt their business and create new opportunities to deliver sales in this climate will flourish.”

Red Flag Alert has been measuring and reporting corporate financial distress since 2004, and over that time has become an industry benchmark of the underlying health of companies across every sector and region of the UK.  

Through its unique algorithm, the Red Flag Alert measures corporate distress signals, drawing on factual legal and financial data from a wide range of relevant sources, including intelligence from the UK’s leading insolvency business, Begbies Traynor.  

Latest news

1

University of Central Lancashire celebrates hat-trick of wins at Educate North Awards University of Central Lancashire winners at Educate North Award Winners 2025

University of Central Lancashire celebrates hat-trick of wins at Educate North Awards

04 Apr 2025

2

The Villa’s sister venue shuts its doors The Villa Levens and The VillaWrea Green (Image credit: The Villa Levens and The Villa Wrea Green)

The Villa’s sister venue shuts its doors

04 Apr 2025

3

PM urged not to retaliate over tariffs Manufacturing

PM urged not to retaliate over tariffs

03 Apr 2025

4

CMAC Group appoints Matthew Ratcliffe as chief operating officer Matthew Ratcliffe CMAC

CMAC Group appoints Matthew Ratcliffe as chief operating officer

03 Apr 2025

5

For sale signs at The Villa Villa Wrea Green has been brought to market (Image credit: The Villa Wrea Green)

For sale signs at The Villa

02 Apr 2025

Pc Prestonmacan Gif980x120 March
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200px
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

The Business Network Central & East Lancashire
LBV Hub Networking
24 Apr 2025 - 24 Apr 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

People Power: Exclusive Event Series
Stay ahead in 2025.jpg.jpg
LBV Hub Seminars
29 Apr 2025 - 29 Apr 2025

People Power: Exclusive Event Series

People's History Museum, Manchester, M3 3ER

17:00 - 21:00

Planning for the future + navigating Inheritance Tax changes
Planning for the future + navigating Inheritance Tax changes for website.png.png
LBV Hub Seminars
01 May 2025 - 01 May 2025

Planning for the future + navigating Inheritance Tax changes

Stanley House Hotel, Mellor, Blackburn, BB2 7NP, Blackburn, BB2 7NP

08:00 - 10:30

A night at the races
1.png.png
LBV Hub Dinners / Balls
02 May 2025 - 02 May 2025

A night at the races

Morecambe FC, Morecambe, LA4 4TB

19:00 - 23:59

Research and Knowledge Exchange Showcase
13421_research_knowledge_exchange_2025_600x300.jpg.jpg
LBV Hub Awards
07 May 2025 - 08 May 2025

Research and Knowledge Exchange Showcase

University of Central Lancashire , Preston, PR1 2HE

09:00 - 17:00

Innovating business solutions through PhD Partnerships
30478 Skills Bootcamp open day setting.jpg.jpg
LBV Hub Networking
07 May 2025 - 07 May 2025

Innovating business solutions through PhD Partnerships

University of Central Lancashire, Preston , PR1 2HE

14:30 - 15:30

Celebrating 50 years of KTP
UCLanAerialCampus.jpg.jpg
LBV Hub Networking
07 May 2025 - 07 May 2025

Celebrating 50 years of KTP

University of Central Lancashire , Preston, PR1 2HE

16:00 - 18:00

Making changes to everyday activities to reduce your carbon footprint
uclan drone_0085.jpg.jpg
LBV Hub Networking
08 May 2025 - 08 May 2025

Making changes to everyday activities to reduce your carbon footprint

University of Central Lancashire, Preston , PR1 2HE

14:00 - 15:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more Lbv121 Online Graphic
Subscribe now

Weekly news bulletin