The number of companies going bust in the West Midlands has fallen by more than 10 per cent despite ongoing problems in the retail sector.
The number of corporate insolvencies in the region fell slightly in the second quarter of the year, down to 401 from 489 in the previous quarter.
When compared to the same quarter in 2011, corporate insolvencies in the region have fallen by 10.3 per cent.
PwC’s latest analysis shows that the West Midlands saw the fourth highest number of corporate insolvencies during the second quarter of 2012.
The highest number of corporate insolvencies was in London with 887, followed by the North West with 535 and Yorkshire and North Lincolnshire with 458. The firm’s analysis of corporate insolvency statistics has also revealed that, on a national basis, the retail industry is significantly worse off compared to this time last year with a 10.3 per cent increase in retail insolvencies in the second quarter of 2012 compared to the second quarter last year.
Matthew Hammond, partner at PwC in the Midlands, said: “It is encouraging that corporate insolvencies in the West Midlands are continuing to decrease, albeit slowly.
“Nationally, the year on year comparison of the number of retail insolvencies has risen, showing the extent to which the retail sector still faces challenging conditions be they weather conditions affecting spring and summer buying patterns or the wary levels of consumer confidence affecting spending decisions.
“On the bright side, and as expected, retail insolvencies have dropped since the first quarter, when retail insolvencies peaked at the highest level we’ve seen since the first quarter of 2009. This reflected the harsh conditions retailers faced in meeting quarterly rent obligations following a lower than normal Christmas trading period. Let’s hope the feel-good factor from the Olympics and the recent change in the position of the jet stream provides a ray of sunshine for British consumers to start spending.”
The worst affected sectors continue to include construction, manufacturing, retail, hospitality and leisure and real estate.