Reduction in North's business failures

The latest figures from the business information company Dun & Bradstreet reveal that there has been a 17 per cent fall in business failures in the North for the first nine months of this year, compared with the same period in 1996, with the total falling from 394 to 327. But this conceals a sharp rise in the number of business bankruptcies in the third quarter of this year, with nearly double the number of firms being declared insolvent compared to a year ago. Between July and September, a total of 43 businesses were liquidated and 76 declared bankrupt. Most of the casualties were in the service sector, with 28 businesses declared bankrupt and 11 liquidated, compared to figures of 17 and seven respectively for the same period in 1996.

Paul Rooney, partner in the business recovery and insolvency division of Coopers & Lybrand, said the service sector was badly hit.