14 Bristol companies collapse amid cost of living…

14 Bristol companies collapse amid cost of living crisis

A Bristol furniture maker and an independent food delivery business are among 14 companies in the city to collapse last month, BristolLive can exclusively reveal. Businesses across Bristol being forced into insolvency as they battle with rising inflation and the growing cost of energy, goods and fuel prices.

The research, carried out for BristolLive by Bristol-based professional services firm Evelyn Partners (formerly Tilney Smith & Williamson), examined regional insolvency figures from the UK's official public record, The Gazette . It includes businesses registered in Bristol and those with directors based in the city region.

According to Evelyn Partners, the region's retail and services sectors have been particularly badly hit. Mandy Pope, senior manager in Evelyn Partners’ restructuring and recovery services team in Bristol, said the effect of rising inflation and the cost of living was "understandably" resulting in less money being spent on the high street.

“If it continues, this may in turn start to have an impact on the housing market when combined with any further interest rate increases which may be implemented by the Bank of England in an effort to stem rising inflation," she said.

“The region has a wealth of hospitality and holiday businesses and with the summer well underway there may be a tendency for businesses already struggling to expect and rely on an upturn over the coming months based on previous years. Those businesses may already be struggling to pass on the increased costs of utilities and also with supply chain issues.”

Of the corporate insolvencies in Bristol in June, the majority were creditors’ voluntary liquidations which resulted in the complete closure of the business. There were also two company administrations, where there may be a prospect the company (or part of it) can be rescued.

A family-owned transport company in Pucklechurch was among the businesses that fell into administration last month after struggling with petrol price hikes and driver shortages. Toogood International Transport and Agricultural Services ceased to trade and all staff were made redundant.

Across the wider South West, there were 57 companies that went bust in June. The figure is down 11% from 64 at the same time last year - but the retail and service sectors in the West Country have seen an increase in corporate insolvencies, and to a level greater than across the rest of the UK.

Ms Pope added: “We would always urge companies currently encountering difficulties to seek insolvency advice at the earliest opportunity, rather than assume the summer will bring an upturn, in order to maximise options available.

“If advice is sought as soon as difficulties arise it may be possible to consider a turnaround or restructuring option in order to save the business, or failing that, to enter a formal insolvency process whereby all or part of the business can continue. This should ensure the best possible result for employees and creditors.”