The number of insolvency-related activities in the South West has reached its highest level for 11 months, according to new research from R3, the insolvency and restructuring trade body.

R3's analysis of data provided by Creditsafe shows there were 151 cases of insolvency-related activity in the South West in February – the highest recorded figure since March 2022's total of 295.

Insolvency-related activity, which includes liquidator appointments, administrator appointments and creditors' meetings, increased by 38.5% in February when compared to the previous month's total of 109.

The South West saw the fourth highest monthly rise of all the regions and nations in the UK in February, falling only behind the West Midlands (58.2% rise), the North East (47.5%) and the South East (46.5%).

Charlotte May, Chair of R3 in the South West, said: "Corporate insolvencies rose between January and February in England and Wales, so it's no surprise we've seen an increase in insolvency-related activity in the South West. 

"The trading climate has been tough for a long time, and the region's businesses have faced significant financial challenges in recent months in the form of weaker than usual trading over the Christmas period, soaring costs and rising interest rates.

Charlotte, who is Associate Director for South West and Wales at Manolete in Bristol, continued: "I'd urge any company director who is worried about their business or who can see it is struggling to seek advice as early as possible.

"It isn't easy to talk about your concerns about your business – especially if it's one you've founded or taken over running from a mentor or family member – but having this conversation early will give you more time they will have to take a decision about how you move forward, and more potential options to resolve your situation than if you'd waited till the problem worsened."