Businesses Urged to Face up to Realities and Seek Advice - January 08

With insolvencies forecasted to rise in 2008, leading south-west law firm Rickerbys is urging businesses and individuals throughout Gloucestershire not to panic.

According to the latest figures published by Euler Hermes, the worlds leading insurer of credit taken on by companies, the number of insolvencies is set to rise by 8.3 per cent in 2008 – the highest annual rate in the UK since 2003 and individuals are facing tougher restrictions on borrowing.

Whilst a bleak prediction, Rickerbys’ Deputy Managing Partner and specialist insolvency practitioner, Derek Jones, is urging local companies and the public to face potential problems head on.

 “There’s little doubt that we will begin seeing the consequences of a worsening UK economic environment which, unfortunately, will make smaller entities more vulnerable,” comments Jones.

 “Over the last two months, we’ve seen a high consumer spend rate which will inevitably cause some difficulties for businesses, sole traders and individuals later in the year as spend decreases.”

 “As a region, Gloucestershire has a strong business community and it is important that they do not bury their heads in the sand. If there are early signs that 2008 will be problematic for businesses, it is critical that they seek professional advice early.”