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East Midlands Chamber News

One-in-four firms affected by another company’s insolvency in past six months

Over a quarter (26%) of UK companies have suffered a hit to their finances following the insolvency of a customer, supplier or debtor in the past six months, according to new research from R3, the insolvency and restructuring trade body.

 

The research found the financial impact of the insolvency of another business was described as “very negative” by one in ten UK companies (10%), and as “somewhat negative” by 16% of respondents.

 

The figures are evidence of the so-called ‘domino effect’, where one company’s insolvency will increase the insolvency risk for others, East Midlands Busines Link has reported: https://bit.ly/2tIWnDn.

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