Despite London seeing an 11% increase in companies in significant distress, CCJs (County Court Judgments) have dropped 30% in the capital.
Real Business Rescue’s recent research also revealed London as having the highest retail rent in the country (£49.64 per sq. ft. per year) and the worst footfall recovery rate (compared to pre-pandemic) across the UK.
Shaun Barton, National Online Business Operations Director at Real Business Rescue, suggests that the picture will only worsen from here.
Barton said, “This time last year we were reporting on a brighter picture, with Q3 2021 seeing the highest number of SMEs moving out of distress since before the pandemic thanks to a surge in consumption as a bid to save local high streets.
“Unfortunately, a year on, companies are under intense strain from rising costs. Consumer spending has also decreased due to the cost of living crisis, with people having little disposable income to support their local businesses as much as they could last year.
Combined, these two factors have a devastating impact on businesses across the country and are only set to worsen unless more support is given.”