Weathering the storm

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Companies in South Yorkshire are “defying expectations and weathering the economic storm,” according to local insolvency specialist Paul Moorhead.

“Many people had expected there to be a massive number of companies going bust in the current economic climate but the figures show that the vast majority of businesses are managing to cope with the current economic downturn,” said Mr Moorhead, from insolvency practice Moorhead Savage.

“The number of companies going bust is around 0.7 per cent of active companies, which is desperately sad and painful for those affected but thankfully the overall level of failure is low

“I am hearing a wide range of views expressed about the current state of the economy, ranging from people saying they are just scraping through, to others saying they are experiencing their best year ever.”

Mr Moorhead says the low failure rate is due, at least in part, to the rescue culture that has been created following the passing of the Enterprise Act in 2002, adding:“Business owners can benefit from the rescue culture, if they need to restructure their businesses or if they need to rescue their company from going bust.”