Hundreds of city firms 'on verge of collapse'

REPORT SHOWS HUGE RISE IN BUSINESSES IN 'DANGER ZONE'

- By WILLIAM TELFORD

A sign saying a store in Plymouth has closed for good. William Telford

(William Telford)

MORE than 1,200 Plymouth businesses are in deep financial trouble and could go bust, according to new data. The latest Red Flag Alert report shows a huge rise in the number of city businesses falling into the danger zone.

Figures from business consultants at Begbies Traynor show the number of Plymouth businesses in “significant distress’ now stands at 1,223, up by 22.9% on the same time last year. In July last year 942 companies were in trouble.

In Devon as a whole, more than 10,500 businesses are in danger of going under. In Cornwall it is 2,500. Begbies Traynor said there had been double-digit year-on-year increases for both counties.

The Red Flag Alert report, which monitors the financial health of UK companies, shows the annual increase of 18.2% for Devon and 16.6% for Cornwall, is similar to increases in Gloucestershire - up 17.8% to 6,539 companies - and Somerset, which is up 17.1%, to 16,373 businesses.