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Posted on 03 May, 2011

Accountants and solicitors feel the pain

Many industries throughout the country who service consumers have experienced financial distress in the first quarter of 2011.

Some 15,000 professional services firms including accountants and solicitors have faced serious financial difficulties. This is a 61% rise against last year’s figures according to Begbies Traynors financial distress index.

Bars and restaurants have also reported a dramatic decline and whilst some chains like Wagamama are prospering many restaurants are losing custom.

Bars and restaurants were worst affected as the number of distressed establishments rose by 68% as consumers reigned in their spending. A major part of the hospitality sector however, hotels, saw a decline in the number facing financial distress.

Businesses in the leisure and culture sectors faced a 60% rise while sports and recreation businesses registered a 23% deterioration.

A total of 186,554 companies experienced a serious deterioration in trading, which is up 15% on last year.

These financially challenging times have forced companies to focus on cash flow and business funding as they search for ways through the current financial turmoil.