Rotherham experts says more companies are on the rocks

Rorherham licensed insolvency practitioner Paul Moorhead, says there was a rush of inquiries from worried companies in the last two months of 2010.

"What the team at Moorhead Savage has been seeing is a larger number of small companies getting into difficulties," Paul said.

"Last year, Government figures suggested there were fewer smaller businesses going into liquidation but what appears to be the case is that a lot were hanging on and hoping for good things that have just not happened and now Christmas is out of the way, they are realising that the New Year will mean having to take drastic action."

Added to this, Paul added, business confidence seemed to be at an all-time low, with insolvency queries coming in from across South Yorkshire and the whole of the north.

"I have businesses saying they are used to being quiet in January but they have always had the expectation of work coming in and this is the first time they have had no new contracts on the horizon and no new work to look forward to at all," he said.

He added, though, that there were steps that could be taken to avoid a crisis becoming a disaster.

"We advise company directors on all the options, including ways of turning the situation around and rescuing the business," Paul said.

"Running out of money is a reality for increasing numbers of businesses but doing nothing is not an option. It is vital for struggling companies to take advice as soon as possible to avoid the worst for everyone involved."