THE number of businesses going bust in the North East shot up in 2012, after the region recorded the largest overall rise of insolvencies in the UK, according to a new report.
Across the rest of the UK, information services company Experian found that fewer UK companies collapsed than in the previous 12 months.
During 2012, there were 708 insolvencies in the North East, a rise of 15.88% compared with the previous 12 months, with 1.67% of businesses failing.
However, these figures have been skewed by the loss of a number of subsidiaries of Arriva, which was registered in Sunderland.
Gareth Rumsey, product director at Experian, said: “The total insolvency figures for 2012 in the North East were affected by the loss of a number of subsidiaries of Arriva plc, which was registered in Sunderland.
“These additional insolvencies account for much of the annual rise in insolvencies figures for the North East. In addition, the business services sector in the area saw a small rise, as did larger businesses – all those above 50 employees.”
Of the other five other regions with rising levels of insolvencies, the East Midlands, with a rise of 5.15%, had the next highest rate of increase compared with the North East.
Experian’s 2012 Business Insolvency Index revealed that during 2012, 0.86% fewer UK companies collapsed than the previous 12 months, with 1.04% of the business population failing compared to 1.1% in 2011.
The business services sector in the area saw a small rise, as did larger businesses – all those above 50 employees