Region high for insolvency risk

Leeds, Sheffield, Bradford and Wakefield are all included in the list, with Leeds experiencing the highest failures of the four at 2.4 per cent.

This marks an improvement on 2008 at 2.9 per cent – and pales into insignificance compared to Sunderland, which last year suffered an insolvency rate of 3.2 per cent and took the national top spot.

The research shows that insolvency rates fell in the final quarter of 2009 for businesses in Yorkshire and Humberside – down 24 per cent – but there were worrying signs for businesses in Sheffield and especially Bradford, which have been identified as insolvency hotspots.

Andy Hodson, regional risk manager for Euler Hermes UK, said: "Bradford is an area to watch with an insolvency rate that has nearly doubled from one per cent in 2008 to two per cent in 2009 which keeps it firmly in the top 10 list of highest insolvency rates for UK towns and cities.

"Sheffield too saw the rate of insolvency rise from two per cent to 2.4 per cent and that gives us cause for concern."

Worst-hit sectors include furniture, metal fabrication, paper and print, timber and recruitment.

Mr Hodson added: "It is grim, but not as grim as you may think.

"It's a mixed bag, with possible signs of better things to come, although we are a long way from a full recovery."

The insolvency rate is the percentage of live, non-dormant companies entering into an insolvent event.