Insolvency profession saved over 46,000 jobs in Yorkshire last year

The insolvency profession in the North of England has significantly contributed to the regional economy, rescuing 41% of businesses that entered a formal insolvency procedure and saving around 92,000 jobs, according to a new report from R3.

The report, Why Insolvency Matters: The insolvency profession’s value to the North of England, reveals that out of approximately 4,995 businesses in the region which became insolvent in 2013/14, 2,070 continued in some form, and 92,135 jobs were saved.

As for Yorkshire, 631 of the 2,102 of the businesses that entered a formal procedure were rescued, saving around 46,246 jobs.*

William Ballmann, chair of R3 in Yorkshire and partner at Gateley Plc, said:

“Yorkshire and the Humber is one of the biggest centres for our profession, with almost a sixth of the UK’s insolvency practitioners based here. The region has a strong record for business rescue, resulting in thousands of jobs saved every year as well as wider benefits for the regional economy.

“This report demonstrates the positive work carried out by insolvency practitioners, with even greater numbers of businesses in difficulty benefitting from behind the scenes assistance from our members – the key is to be proactive and seek professional advice for financial problems at an early stage.”

Mr Ballmann continued: “With talk of a ‘Northern Powerhouse’ continuing, an effective insolvency regime and profession will have a vital role to play, protecting value by enabling businesses to continue trading, saving jobs in the region and giving a better return for creditors when businesses fail or by helping them avoid insolvency in the first place.”

The final figures don’t include those companies which took advice from insolvency practitioners but managed to refocus their business without entering a formal insolvency procedure.

Around a fifth of the profession’s work with businesses across the UK involves general or pre-insolvency advice (22%). There are around 300 insolvency practitioners in Yorkshire and the Humber out of approximately 1,750 in the UK.

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