The number of company administrations in the Yorkshire region fell by 19% in 2015, while the number of businesses in the North East entering administration fell by 10% in the past year.
Deloitte's analysis reveals that ten Yorkshire-based retailers went into administration in 2015, compared to 14 the previous year, while the number of administrations in the region across all sectors fell from 172 to 139.
Yorkshire saw a bigger fall in company administrations than any other English region.
The manufacturing sector in Yorkshire saw the biggest drop, with a 38% year-on-year fall in administrations, from 47 to 29.
The total of 28 North East companies going into administration in 2015 was three lower than the 2014 total. The sector with the highest number of administrations in the region was manufacturing, with a total of six in 2015, compared to seven the previous year.
Across all sectors in England, the figure fell from 1,302 in 2014 to 1,147 companies last year, a 12% decrease. Nationally, the number of retailers in administration fell from 119 in 2014 to 96 during 2015, a decrease of 19%.
Only two out of the 11 sectors in the Deloitte report saw an increase in administrations – Mining, Energy & Agriculture with a 12% increase and Transport & Communication with a 5% increase. Meanwhile the Technology and Media sector saw the biggest drop in administrations: down 40% from 90 to 54.
The data reminds us that administration is being used less and less as a restructuring tool, especially by the medium and larger players in the retail sector.
Solvent restructuring practices are now more common, due to the current availability of funding, and a pattern is emerging whereby Deloitte is working with companies on restructuring and refinancing.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
